New Delhi, Jan. 29 -- India's banking sector has recorded a significant improvement in asset quality, with recovery rates in non-performing assets (NPAs) nearly doubling over the past seven years, according to the Economic Survey 2026 tabled in Parliament on Thursday.
The Survey noted that the recovery rate in NPAs of Scheduled Commercial Banks (SCBs) rose from 13.2 per cent in FY18 to 26.2 per cent in FY25.
Both gross and net NPA ratios have fallen to multi-decadal and record lows, respectively, while the capital-to-risk-weighted-asset ratio (CRAR) of SCBs remained robust at 17.2 per cent as of September 2025.
Regional Rural Banks (RRBs) also reported strong financial performance following consolidation and technology integration measur...