ASSET QUALITY OF SCHEDULED COMMERCIAL BANKS (SCBs) WITNESSES SIGNIFICANT IMPROVEMENT, RECOVERY RATE IN NPAs APPROXIMATELY DOUBLES FROM 13.2 PER CENT IN FY18 TO 26.2 PER CENT IN FY25

• Recovery rate in NPAs of Scheduled Commercial Banks rose from 13.2% (FY18) to 26.2% (FY25), signalling structural improvement in banking asset quality.
• Gross NPA ratio of SCBs hit a multi-decadal low of 2.15% (Sept 2025); CRAR at 17.2% indicates strong capital buffers.
• Reflects success of the 4R strategy (Recognition, Recapitalisation, Resolution, Reform) and the IBC, 2016 framework — recurring Prelims/Mains hot area in Banking & Economy.