The gross non-performing asset (GNPA) ratio of Indian banks fell to a 12 year low of 2.8% in March 2024 and is expected to reduce further down to 2.5% by the end of the financial year 2024-25, according to the RBI's Financial Stability Report released on Thursday(27 June 2024).

• This ratio refers to the proportion of the total value of bad loans, which are bank loans that are unlikely to be repaid (also known as gross non-performing assets), to the total assets the bank has or the total loans it has given.
• A lower GNPA ratio means the number of loans that may go unpaid are less and can be a positive indicator.
• In September, the ratio was 3.2%, highlighting a significant improvement now.
• The net non-performing asset (NNPA) ratio also declined to 0.6% this March, compared to 0.8% last September.