ET Graphics: Despite MFI pressure, bad loans seen at 15-year low

A new report suggests good news for Indian banks. Bad loans are expected to remain low in FY26. Care Ratings reports a 15-year low of 2.3-2.4%. Corporate deleveraging and declining GNPA are helping. The system-level GNPA ratio has already declined. It reached 2.3% in June 2025. However, private sector banks saw a rise in bad loans.