This study examines recent developments in asset quality across scheduled commercial banks in India using supervisory statistics published by the Reserve Bank of India (RBI) for 2024–2025. A balanced panel dataset covering public sector, private sector, foreign, and small finance banks is analyzed through descriptive indicators, comparative trend assessment, and pooled panel regression techniques. To test the stability of results, an alternative logarithmic specification is also estimated. The findings show that public sector banks continue to account for the largest share of impaired assets in absolute terms, although their gross non-performing asset (GNPA) ratios have declined. At the same time, relatively faster growth in stressed loans is observed among private and small finance banks, particularly in business and agricultural credit portfolios. These results suggest that while legacy stress is gradually being resolved, new pockets of vulnerability are emerging in specific institutional segments.
Saini et al. (Thu,) studied this question.