<p>New Delhi: Asset quality of Indian <a href="https://www.deccanherald.com/search?q=banks">banks</a> is at its best in decades supported by double-digit balance sheet expansion in 2024-25, sustained profitability and high capital buffers, as per a report released by the Reserve Bank of India (<a href="https://www.deccanherald.com/search?q=RBI">RBI</a>) on Monday.</p><p>The gross non-performing assets (GNPA) ratio, which measures bad loans as a share of total lending, fell to 2.1 per cent at September-end, slightly better than 2.2 per cent recorded in March.</p>.Bombay HC stays action by three banks against Anil Ambani, Reliance Communications; says RBI directions violated.<p>The GNPA of Indian banks at September-end was the lowest in several decades.</p><p>Non-banking financial companies (NBFCs) also recorded robust performance, supported by double-digit credit growth, improved asset quality and comfortable capital buffers, the RBI said in 'Trend and Progress of Banking in India 2024-25' report.</p><p>Consolidated balance sheet of scheduled commercial banks, excluding regional rural banks, increased by 11.2 per cent in 2024-25 on a year-on-year basis. On the assets side, bank credit and investments increased by 11.5 per cent and 9.2 per cent, respectively. On the liabilities side, deposits increased by 11.1 per cent in 2024-25.</p><p>India’s commercial banking sector consists of 12 public sector banks (PSBs), 21 private sector banks, 44 foreign banks, 11 small finance banks, six payments banks, 43 regional rural banks, and two local area banks as of March 2025. </p><p>Out of the 139 commercial banks, 135 were classified as scheduled banks, while four were non-scheduled.</p><p>The share of PSBs in the consolidated balance sheet of SCBs declined to 54.9 per cent at end-March 2025 from 55.2 per cent at end-March 2024.</p><p>Profitability of SCBs remained robust with the return on assets at 1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024-25. During the first half of the current financial year, the return on asset and return on equity of the SCBs declined to 1.3 per cent and 12.5 per cent, respectively.</p><p>The central bank, however, flagged the rising cases of digital frauds and mounting consumer grievances.</p><p>“While substantial progress has been made in improving consumer services, rising grievances continue to be a matter of concern,” the RBI said.</p><p>RBI noted that consumer protection is fundamental to strengthening trust and confidence in the financial system. “This, in turn, rests on fair treatment of customers and an efficient grievance redressal mechanism,” it said.</p><p>The RBI said it is working with different stakeholders, including the Ministry of Home Affairs, to develop and operationalise measures to curb digital and cyber-enabled fraud. </p>
<p>New Delhi: Asset quality of Indian <a href="https://www.deccanherald.com/search?q=banks">banks</a> is at its best in decades supported by double-digit balance sheet expansion in 2024-25, sustained profitability and high capital buffers, as per a report released by the Reserve Bank of India (<a href="https://www.deccanherald.com/search?q=RBI">RBI</a>) on Monday.</p><p>The gross non-performing assets (GNPA) ratio, which measures bad loans as a share of total lending, fell to 2.1 per cent at September-end, slightly better than 2.2 per cent recorded in March.</p>.Bombay HC stays action by three banks against Anil Ambani, Reliance Communications; says RBI directions violated.<p>The GNPA of Indian banks at September-end was the lowest in several decades.</p><p>Non-banking financial companies (NBFCs) also recorded robust performance, supported by double-digit credit growth, improved asset quality and comfortable capital buffers, the RBI said in 'Trend and Progress of Banking in India 2024-25' report.</p><p>Consolidated balance sheet of scheduled commercial banks, excluding regional rural banks, increased by 11.2 per cent in 2024-25 on a year-on-year basis. On the assets side, bank credit and investments increased by 11.5 per cent and 9.2 per cent, respectively. On the liabilities side, deposits increased by 11.1 per cent in 2024-25.</p><p>India’s commercial banking sector consists of 12 public sector banks (PSBs), 21 private sector banks, 44 foreign banks, 11 small finance banks, six payments banks, 43 regional rural banks, and two local area banks as of March 2025. </p><p>Out of the 139 commercial banks, 135 were classified as scheduled banks, while four were non-scheduled.</p><p>The share of PSBs in the consolidated balance sheet of SCBs declined to 54.9 per cent at end-March 2025 from 55.2 per cent at end-March 2024.</p><p>Profitability of SCBs remained robust with the return on assets at 1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024-25. During the first half of the current financial year, the return on asset and return on equity of the SCBs declined to 1.3 per cent and 12.5 per cent, respectively.</p><p>The central bank, however, flagged the rising cases of digital frauds and mounting consumer grievances.</p><p>“While substantial progress has been made in improving consumer services, rising grievances continue to be a matter of concern,” the RBI said.</p><p>RBI noted that consumer protection is fundamental to strengthening trust and confidence in the financial system. “This, in turn, rests on fair treatment of customers and an efficient grievance redressal mechanism,” it said.</p><p>The RBI said it is working with different stakeholders, including the Ministry of Home Affairs, to develop and operationalise measures to curb digital and cyber-enabled fraud. </p>