India Remains a Key Driver of Global Growth, RBI Report Confirms

India continues to play a vital role in propelling global economic growth, according to a report released by the Reserve Bank of India (RBI) on Monday. This positive momentum is reflected in the significant improvement in the health of the Indian banking system.

Banking System NPAs Reach Multi-Decade Low

The report highlights a remarkable drop in the gross non-performing assets (NPAs) of the banking system. These NPAs have fallen to a multi-decade low of 2.3% in March 2025, down from 2.6% in September 2024. This positive trend signifies increased stability and strength within the Indian financial sector.

Loan Write-Offs Contribute to NPA Reduction

A key factor contributing to this decline in NPAs is the increase in loan write-offs. These write-offs rose to 31.8% of NPAs in the fiscal year 2025. While this practice helps clean up bank balance sheets, it’s important to understand the underlying reasons behind these write-offs to ensure sustainable financial health.

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