India's banking sector concluded 2025 with its strongest balance sheets in over a decade, according to the Reserve Bank of India's Financial Stability report. Key indicators improved, with gross non-performing assets (GNPAs) falling to multi-year lows of 2.3% by March 2025 and further to 2.2% by September. The RBI projects continued resilience, with GNPAs potentially dropping to 1.9% by March 2027, supported by strong capital buffers, healthy profitability, and effective legacy bad-loan resolution.