New Delhi, Dec. 17 -- The gross non-performing asset (NPA) ratio of scheduled commercial banks (SCBs) in MSME and retail loan segments has shown a steady decline, Minister of State for Finance Pankaj Chaudhary informed Parliament in a written reply.

Improving Asset Quality

According to RBI data, the gross NPA ratio in MSME loans fell from 9.87 percent in March 2021 to 3.27 percent as of September 2025. Similarly, NPAs in retail loans, declined from 2.22 percent to 1.13 percent over the same period.

However, the minister noted that within the retail segment, NPAs in personal loans rose from 0.92 percent in March 2023 to 1.28 percent in September 2025, while unsecured retail loan NPAs increased from 1.60 percent to 1.84 percent.

Despite...