Report on Trend and Progress of Banking in India 2024-25 has been released by RBI

Current Context: On 29 December 2025, the Reserve Bank of India (RBI) released its annual Report on Trend and Progress of Banking in India 2024‑25 under Section 36(2) of the Banking Regulation Act, 1949.

• The report highlights double‑digit growth in deposits and credit, though slightly slower than the previous year.
• It records strong profitability with Return on Assets (RoA) at 1.3% and Return on Equity (RoE) rising.
• Asset quality improved, with Gross NPAs (Non‑Performing Assets) falling to 2.1%, a multi‑decadal low.
• Capital adequacy remained robust, with CRAR at 17.2%, well above regulatory requirements.
• Urban co‑operative banks and NBFCs also showed improved performance.
• However, the report flagged concerns over KYC lapses, cyber frauds, and customer grievances, stressing the need for stronger compliance and security measures.

Question:

Q.1 According to the Report on Trend and Progress of Banking in India 2024–25, the Gross Non-Performing Assets (GNPA) ratio of banks stood at:
a) 3.2%
b) 2.8%
c) 2.1%
d) 1.7%

Answer: c) The report records GNPA at 2.1%, the lowest in multiple decades, reflecting improved asset quality.