Banks post robust performance in FY25; GNPA declines to multi-decadal low: RBI
Mumbai (PTI): Commercial banks maintained robust performance in 2024-25, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent at March-end, according to a RBI report released on Monday.
The banking sector remained resilient during 2024-25, supported by a strong balance sheet, sustained profitability and improved asset quality, said the Report on Trend and Progress of Banking in India 2024-25.
Bank credit and deposit growth continued in double-digits, albeit with a moderation. Capital and liquidity buffers remained well above the regulatory requirements across bank groups.
"Strong banking sector fundamentals provide a buffer against risks, which, together with prudent regulation, create conditions for sustained credit flow," the report said.
Net profits of commercial banks increased during 2024-25, albeit at a slower pace compared to the previous year, it added.
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Combined net profit of all scheduled commercial banks (SCBs) rose 14.8 per cent year-on-year to Rs 4.01 lakh crore during 2024-25. In 2023-24, their profit had increased by 32.8 per cent to about Rs 3.5 lakh crore.
The RBI report said the profitability of the SCBs remained robust with the return on assets (RoA) at 1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024-25.
During H1: 2025-26, RoA and RoE of the SCBs stood at 1.3 per cent and 12.5 per cent, respectively.
The capital-to-risk-weighted assets ratio of SCBs was 17.4 per cent at March-end 2025 and 17.2 per cent at the end of September 2025, the report said.
"Asset quality strengthened further, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent at end-March 2025 and 2.1 per cent at end-September 2025," it pointed out.
Also, the consolidated balance sheet of urban co-operative banks recorded higher growth in 2024-25 than the previous year.
Their asset quality improved for the fourth consecutive year, alongside the strengthening of their capital buffers and profitability.
According to the report, the non-banking financial companies continued to record double-digit credit growth along with robust capital buffers. Their asset quality also improved during the year.
The report presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2024-25 and 2025-26 so far.
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The Latest: Kuwait blames Iran for drone strikes as Trump casts doubt on ceasefire
Dubai (AP): US President Donald Trump appeared to cast doubt on the effectiveness of the two-week ceasefire over Iran's continued chokehold over the Strait of Hormuz, while Kuwait accused Iran and its proxies of launching drone attacks targeting it on Thursday despite the ceasefire.
Iran's paramilitary Revolutionary Guard denied launching attacks on Persian Gulf states after Kuwait's announcement.
Israeli Prime Minister Benjamin Netanyahu offered a potential boost to ceasefire efforts in the region when he said he had approved direct talks with Lebanon. The Lebanese government has not responded as of Friday morning.
The announcement came after Israel's pounding of Beirut Wednesday killed more than 300 people. The negotiations are expected next week in Washington, according to a person familiar with the matter.
Questions remained over what will happen to Iran's stockpile of enriched uranium at the heart of tensions, how and when normal traffic will resume through the Strait of Hormuz, and what happens to Iran's ability to launch future missile attacks and support armed proxies in the region.
Talks between the United States and Iran on a resolution to the conflict are expected to start Saturday in Islamabad, with the White House saying Vice President JD Vance would lead the US delegation.
Here is the latest:
Air defence fire and explosions heard in Iran
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Multiple times overnight into Friday morning, people around Iran's capital, Tehran, and other parts of the country said they heard what sounded like air defence fire and explosions.
However, Iran's government did not acknowledge any attack during that period.
After past exchanges of fire with Israel, similar incidents happened as troops remained on edge.
Japan releases more oil reserves
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Japan said it will release an additional 20 days' worth of oil reserves in May, in a second round to address supply uncertainty over the war in the Middle East.
Japanese Prime Minister Sanae Takaichi said the planned release of the government reserves will start in early May, after an earlier release last month.
Japan started releasing about 50 days' worth of oil reserves in March, including from those held by the state, the private sector and oil-producing Gulf nations.
As of April 6, Japan had 230 days' worth oil reserves, including 143 days' worth in government stockpiles, according to the Natural Resources and Energy Agency.
Takaichi said her government is working to secure oil imports via routes that do not include the Strait of Hormuz, while Japan seeks to diversify suppliers.
Pakistan to issue visas on arrival ahead of talks
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Pakistan said Friday it would issue visas on arrival for those travelling to Islamabad for the Iran-US talks, signalling the interest in the world's media in the event.
