Indian Banking Sector Apr 2026

Banks are transitioning from an "incurred loss" model to a forward-looking ECL framework , aligning with global IFRS 9 standards.

The sector maintains a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 17.4% , well above regulatory requirements. Indian banking sector

Gross non-performing assets (GNPA) reached a decade low of 2.1% by September 2025. Banks are transitioning from an "incurred loss" model

As of April 2026, the Indian banking sector is on its strongest footing in decades , characterized by high capital buffers, record profitability, and asset quality at multi-decade lows. characterized by high capital buffers