Graphic of the day: India’s bad loans plunge

India slashes its NPL ratio to 2.4%, rapidly closing the asset quality gap with Western economies

By
Samreen Wani
Last Updated: Jan 06, 2026, 15:55 IST1 min
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New RBI data highlights India’s banking turnaround: the NPL ratio plummeted from 5.9% in 2015 to a decade low of 2.4% in Q2 2025. While the US (0.9%) and UK (1%) maintain elite asset quality, India’s aggressive cleanup marks a significant milestone in emerging market resilience.
New RBI data highlights India’s banking turnaround: the NPL ratio plummeted from 5.9% in 2015 to a decade low of 2.4% in Q2 2025. While the US (0.9%) and UK (1%) maintain elite asset quality, India’s aggressive cleanup marks a significant milestone in emerging market resilience.

First Published: Jan 06, 2026, 16:24

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Samreen Wani
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