Gross NPAs of scheduled commercial banks fall to historic low of 2.15%
The Ministry of Finance said on 9 February 2026 that the gross NPA ratio of scheduled commercial banks for domestic operations fell to a historic low of 2.15% at the end of September 2025.
Summary
The Ministry of Finance said on 9 February 2026 that the gross non-performing asset (NPA) ratio of scheduled commercial banks for domestic operations was at a historic low of 2.15% at the end of September 2025 (provisional), lower than the 2010–11 level, after eight years of continuous decline. As of 30 September 2025, the ratio was 2.50% for public sector banks, 1.73% for private sector banks and 0.80% for foreign banks. The ministry credited the RBI's Asset Quality Review of 2015 and the government's 4R strategy — recognition, resolution and recovery, recapitalisation, and reforms.
Key facts
- Announced
- 9 February 2026
- SCB gross NPA (30 Sep 2025)
- 2.15% — historic low
- By bank group
- PSBs 2.50%, private 1.73%, foreign 0.80%
- Trigger reforms
- RBI Asset Quality Review (2015), 4R strategy
- 4Rs
- Recognition, resolution & recovery, recapitalisation, reforms
Practice MCQs 2 questions
What was the gross NPA ratio of scheduled commercial banks for domestic operations at the end of September 2025, as stated on 9 February 2026?
Show answer
Correct answer: C — 2.15%
The SCB gross NPA ratio was a historic low of 2.15%; PSBs were at 2.50%, private banks 1.73% and foreign banks 0.80%.
In which year did the RBI initiate the Asset Quality Review that the Finance Ministry credited for the fall in gross NPAs?
Show answer
Correct answer: C — 2015
The RBI began the Asset Quality Review in 2015, followed by the government's 4R strategy.