New Delhi, Jan. 29 -- India's banking system continues to remain stable, supported by strong capital buffers, low non-performing asset ratios (NPAs), and increasing profitability, according to Economic Survey 2026 released on Thursday.

A significant improvement has been observed in the asset quality of Scheduled Commercial Banks (SCBs), as evidenced by their gross non-performing asset (GNPA) ratio and net NPA ratio, having reached a multi-decadal low level and record low level, respectively.

The Economic Survey further highlighted that the recovery rate in NPAs in SCBs has approximately doubled from 13.2 per cent in FY18 to 26.2 per cent in FY25. The slippage ratio of SCBs, which measures the amount of new accretion to NPAs during the F...