The Reserve Bank of India’s (RBI) Financial Stability Report for June 2025 projects that the gross non-performing assets (GNPA) ratio of 46 major banks may rise marginally from 2.3% in March 2025 to 2.5% by March 2027 under the baseline scenario. This indicates a slight increase in bad loans, but the banking system is expected to remain resilient, supported by robust capital buffers and strong earnings. Under adverse scenarios, the GNPA ratio could increase to 5.6% (geopolitical risk scenario) or 5.3% (global economic slowdown scenario). No banks are projected to fall below the regulatory minimum capital adequacy ratio of 9%, even under extreme stress conditions. -----------------------------------------------------------------------------------------------------------------------------------------------Give the gift of thoughtfulness with our curated selection of unique and meaningful gift items.
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