Moody’s projects stable outlook for India's banking sector, NPAs to remain low

Moody's Ratings projects a stable outlook for India's banking sector, anticipating a low non-performing asset ratio of 2-2.5% over the next 12-18 months. Robust economic growth, projected at 6.4% for FY26-27, will underpin solid fundamentals and stable profitability, with loan growth expected to keep pace with deposits.