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FY25 saw SCBs net profit hit Rs 4.01 lakh crore and PSBs Rs 1.78 lakh crore. GNPA ratios fell, buffers improved, and digital payments surged to 22,831 crore transactions.
Financial inclusion remains a priority through schemes like PMJDY, PMJJBY, PMSBY, MUDRA and Atal Pension Yojana, extending banking, insurance and pension cover to millions.
Total digital payment volumes in FY2024-25 surged to 22,831 crore transactions, growing at a compound annual rate of 41% since FY 2017–18. The DIGIDHAN Mission has played a central role in expanding digital transactions across the country.
Transaction value also rose sharply, from Rs 1,962 lakh crore to Rs 3,509 lakh crore, highlighting deeper adoption across consumers and businesses.
Asset quality improves sharply across banks
Parallel to digital growth, DFS-led banking reforms have delivered a decisive clean-up of balance sheets. The gross NPA ratio of scheduled commercial banks declined to 2.22% in March 2025, while that of public sector banks fell to 2.58%. This marks a major turnaround from the stress peak seen in 2018. Net NPAs have also dropped steadily, reflecting better recovery and tighter credit monitoring.
Strong buffers and record profitability
Banks are now far better prepared to absorb risks. The provision coverage ratio of SCBs has risen from 49.31% in March 2015 to a robust 93.14% in March 2025. Capital adequacy levels have improved as well, supported by market fund-raising and internal accruals. FY25 was a record year, with SCBs posting aggregate net profits of Rs 4.01 lakh crore and PSBs earning Rs 1.78 lakh crore.
Financial inclusion remains a priority through schemes like PMJDY, PMJJBY, PMSBY, MUDRA and Atal Pension Yojana, extending banking, insurance and pension cover to millions. Backed by regulatory oversight from the Reserve Bank of India, DFS initiatives have together built a more resilient, digital-first and inclusive financial system.
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January 10, 2026, 15:13 IST
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