India Banking Industry: Asset Quality and Capital (RBI FSR)

Indian scheduled commercial banks had a 2.8% GNPA ratio and 16.8% CRAR at end-March 2024, per RBI's Financial Stability Report, plus stress tests.

Updated October 1, 2026
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India

Executive Summary

RBI's Financial Stability Report of June 2024 shows that Indian scheduled commercial banks had a capital to risk-weighted assets ratio (CRAR) of 16.8% and a CET1 ratio of 13.9% at end-March 2024. Their gross NPA ratio fell to a multi-year low of 2.8% and net NPA to 0.6%. Stress tests projected system CRAR for March 2025 at 13.0% even in a severe scenario. NBFCs had CRAR of 26.6% and a GNPA ratio of 4.0%.

Key Numbers

SCB GNPA ratio: 2.8%[1]; Gross NPA ratio, scheduled commercial banks, end-March 2024
SCB NNPA ratio: 0.6%[1]; Net NPA ratio, end-March 2024
SCB CRAR: 16.8%[1]; Capital to risk-weighted assets ratio, end-March 2024
SCB CET1 ratio: 13.9%[1]; Common equity tier 1 ratio, end-March 2024
NBFC GNPA ratio: 4.0%[1]; Non-banking financial companies, end-March 2024

Charts

Projected SCB CRAR for March 2025 under stress scenarios

RBI macro stress test projections (not forecasts) made in June 2024, compared with actual CRAR at end-March 2024.

Actual Mar 2024
16.8%
Baseline Mar 2025P
16.1%
Medium stress Mar 2025P
14.4%
Severe stress Mar 2025P
13%

Unit: % · March 2024 actual vs March 2025 projectionSource: [1] Reserve Bank of India

Data Tables

Banks vs NBFCs: key ratios, end-March 2024

Capital and asset quality ratios from RBI's June 2024 FSR.

Indicator	Scheduled commercial banks	NBFCs
CRAR	16.8%	26.6%
GNPA ratio	2.8%	4.0%
CET1 ratio	13.9%	-
NNPA ratio	0.6%	-
Return on assets	-	3.3%

Source: [1] Reserve Bank of India

Overview

RBI's Financial Stability Report (FSR) is a twice-yearly assessment by the Sub-Committee of the Financial Stability and Development Council. The June 2024 report was the 29th issue [1]. RBI said banks and financial institutions were supporting economic activity through sustained credit expansion [1].

Asset Quality

The gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) fell to a multi-year low of 2.8% at end-March 2024 [1]. The net NPA ratio fell to 0.6% [1].

Capital Adequacy

SCBs had a CRAR of 16.8% and a CET1 ratio of 13.9% at end-March 2024 [1].

RBI macro stress tests projected system-level CRAR for March 2025 at 16.1% under the baseline, 14.4% under medium stress and 13.0% under severe stress [1]. RBI said banks would still meet minimum capital requirements, and that these results are hypothetical scenarios, not forecasts [1].

Non-Banking Financial Companies

NBFCs had a CRAR of 26.6%, a GNPA ratio of 4.0% and a return on assets of 3.3% at end-March 2024 [1].

Methodology

All figures are from RBI's press release on the Financial Stability Report, June 2024, dated 27 June 2024 [1]. Ratios refer to end-March 2024. GNPA and NNPA are shares of gross loans and advances. Stress test values are projections under hypothetical scenarios. Later FSR editions were not verified from a primary RBI page for this edition, so the report shows end-March 2024 as the latest verified data.

Sources

[1]
RBI releases the Financial Stability Report, June 2024 / Reserve Bank of India / 2024-06-27 / Accessed October 1, 2026 / View source

Figures are reproduced from the publishers above. Calculations marked as our own are derived from these figures. Always check the original source before using a number.

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