RBI finds bad loans at multidecade low across Indian banks
Business
India's banks are in their best shape in decades, with bad loans, NPAs, at a multidecade low, according to the RBI's latest report.
This is thanks to stronger profits, better loan quality, and solid capital reserves that keep banks stable even when things get rough.
Commercial sector credit up 15.9%
Bank lending grew much faster than deposits in 2025-26 (FY2025-26): bank credit to the commercial sector jumped 15.9%, while deposits lagged behind.
Urban cooperative banks also saw healthy growth in both loans and deposits.
Even with this rapid lending, stress tests showed banks have enough capital to handle tough situations if they come up.