ASSET QUALITY OF SCHEDULED COMMERCIAL BANKS (SCBs) WITNESSES SIGNIFICANT IMPROVEMENT, RECOVERY RATE IN NPAs APPROXIMATELY DOUBLES FROM 13.2 PER CENT IN FY18 TO 26.2 PER CENT IN FY25

India, Jan. 29 -- The Government of India has issued a release:

A significant improvement has been observed in the asset quality of Scheduled Commercial Banks (SCBs), states the Economic Survey 2025-26 that was tabled in the Parliament today by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.. The gross non-performing asset (GNPA) ratio and net NPA ratio have reached a multi-decadal low level and record low level, respectively. At the same time, the capital-to-risk-weighted-asset ratio (CRAR) of the SCBs remained strong at 17.2 per cent as of September 2025.Further, 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 recovery rate through the Inso...