New Delhi, Nov. 21 -- The financial health of banks in the country continues to strengthen, with non-performing assets (NPAs) registering a steady decline in the second quarter of the current financial year FY26, highlighted a report by CareEdge Ratings.

According to the report, the Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks (SCBs) improved to 2.1 per cent as of Q2FY26.

It stated "Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks (SCBs) improved to 2.1 per cent as of Q2FY26 (from 2.6 per cent a year earlier), with GNPA declining 11.1 per cent year-on-year (y-o-y) to Rs 4.05 lakh crore".

The rating agency noted that strong recoveries, healthy upgrades, lower incremental slippages, and conti...