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Retail Loan NPA in India Crosses Rs.66 Lakh Crore

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The Reserve Bank of India (RBI) has released data showing the trend in gross non-performing assets (NPAs) of retail loans in Scheduled Commercial Banks (SCBs) over the last three financial years and the current financial year.

According to the RBI, the gross NPAs in retail loans stood at ₹42,22,521 crore as of March 31, 2023. During this period, the ratio of gross NPAs to gross advances was 1.45%. The amount of retail loan NPAs increased in the next year. As of March 31, 2024, gross NPAs rose to ₹53,78,126 crore, but the NPA ratio declined to 1.20%, indicating improvement in asset quality.

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The trend continued in the following year. As of March 31, 2025, gross NPAs increased further to ₹60,04,228 crore, while the NPA ratio fell slightly to 1.18%. As per the provisional data for the current financial year, the gross NPAs in retail loans stood at ₹66,43,078 crore as of December 31, 2025. The NPA ratio further declined to 1.04%, showing continued improvement in the health of retail loan portfolios.

As onGross NPAs (₹ Crore)Gross NPAs to Gross Advances (%)
31.03.202342,22,5211.45
31.03.202453,78,1261.20
31.03.202560,04,2281.18
31.12.202566,43,0781.04

💳 Easy Retail Loans: Are They Increasing NPAs?

Retail loans such as personal loans, credit card loans, and instant mobile app loans have become very easy to obtain in India. Many banks and fintech apps now offer quick loans with minimal documentation and fast approval.

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📊 Why Easy Loans Are Growing
  • Digital loan apps provide instant approval
  • Minimal paperwork and online KYC
  • Loans approved within minutes
  • Growing demand for quick personal credit
Related:  Bank of Baroda Raises $500 Million Loan from Global Investors
⚠️ How Easy Loans Can Increase NPAs
  • Borrowers may take loans without proper repayment capacity
  • Some people take loans from multiple apps and banks
  • High interest rates make repayment difficult
  • Short loan tenures increase default risk
🏦 What Banks Are Doing
  • Using credit scores and AI risk models
  • Monitoring borrower repayment behavior
  • Setting limits on instant personal loans
  • Strengthening digital lending regulations
📌 Key Point: While easy access to retail loans has improved financial inclusion, experts warn that excessive and unchecked lending can increase the risk of loan defaults and NPAs in the banking system.

The data indicates that while the absolute amount of NPAs has increased due to growth in lending, the percentage of NPAs compared to total advances has been steadily declining, suggesting stronger recovery and better credit quality in retail loans.

As per latest reports, Large Defaulters Owe Rs.29 Lakh Crore to PSU Banks. Large defaulters are borrowers who owe ₹1 crore or more and are facing civil cases filed by banks for non-repayment of loans. According to publicly available data, 11 PSU banks are currently fighting civil cases in courts across the country to recover about ₹28.93 lakh crore from corporate borrowers. One of the biggest defaulters on the list is Anil Ambani and his companies, with outstanding dues of about ₹48,282 crore. The default by large borrowers bank wise is as follows:

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RankBank NameLarge Default Amount
1Union Bank of India₹9.96 lakh crore
2State Bank of India (SBI)₹5.79 lakh crore
3Punjab National Bank₹2.59 lakh crore
4Canara Bank₹2.49 lakh crore
5Bank of Baroda₹2.21 lakh crore
6Bank of Maharashtra₹1.78 lakh crore
7Central Bank of India₹1.44 lakh crore
8UCO Bank₹1.11 lakh crore
9Bank of India₹96,512 crore
10Indian Overseas Bank₹30,861 crore
11Punjab & Sind Bank₹27,954 crore

Also Read: Large Defaulters Owe Rs.29 Lakh Crore to PSU Banks, Recovery Cases Ongoing in Courts

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Hellobanker Team

Hellobanker.in is India's leading banking and finance news portal. Our expert team covers banking policies, RBI updates, financial markets, and investment insights.
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