💨 Abstract

The Reserve Bank of India's recent report shows that gross non-performing assets (GNPAs) of scheduled commercial banks decreased to 2.1% and net NPAs to 0.5% by September 2025, marking multi-decade lows. This improvement, driven by recoveries and upgrades rather than write-offs, suggests a sustainable structural transformation. However, the challenge lies in maintaining discipline to prevent future risks, especially as credit growth accelerates.

Courtesy: theprint.in