Overall the financial health of banks remains sound, with strong capital and liquidity buffers, improved asset quality and robust profitability, the report said, adding banks' capital buffers also remain adequate. From a capital perspective, the capital to risk-weighted assets ratio (CRAR) remained strong as of September 2025, with public sector banks at 16% and private sector banks at 18.1%. Stress tests indicated relatively higher depletion in the capital of public sector banks compared with private and foreign banks. More than half of retail loan slippages are coming from unsecured products such as personal loans and credit cards, the RBI said. Among bank groups, private sector lenders recorded a higher share of fresh slippages.

Source: Indian Express January 01, 2026 18:55 UTC