Five Indian banks, including State Bank of India, ICICI Bank and Punjab National Bank, reported a decline in net non-performing asset ratios in FY26, helped by better recoveries, lower slippages and improved loan-book quality.
A lower net NPA ratio reduces pressure from provisions and can support profitability.
Banks that reduced net NPAs
Bandhan Bank Ltd
Bandhan Bank’s net NPA ratio fell to 1.0%, improving by 32 basis points year-on-year and 3 basis points quarter-on-quarter.
Key Q4 numbers:
- NII: ₹2,800 crore, up 1.4% YoY
- Total net revenue: ₹3,570 crore, up 3.2% YoY
- Operating profit: ₹1,440 crore, down 8.3% YoY
- PAT: ₹530 crore, up 68% YoY
The stock traded at ₹204.10, against its previous close of ₹205.90. Market capitalisation stood at ₹32,937 crore.
Indian Overseas Bank
Indian Overseas Bank’s net NPA ratio declined to 0.21% in FY26 from 0.37% a year earlier.
Asset quality improved across key measures:
- GNPA fell to ₹4,410 crore from ₹5,348 crore
- NNPA dropped to ₹638 crore from ₹912 crore
- GNPA ratio improved to 1.42% from 2.14%
For FY26, net profit rose 56.2% to ₹5,208 crore. NII increased 15.5% to ₹12,574 crore.
The stock traded at ₹32.94. Market capitalisation was ₹63,431 crore.
State Bank of India
SBI’s net NPA ratio improved to 0.39% from 0.47%. Its gross NPA ratio fell by 33 basis points to 1.49%.
FY26 performance:
- NII: ₹1,73,120 crore, up 4.1%
- Operating profit: ₹1,23,015 crore, up 11.3%
- Net profit: ₹80,032 crore, up 12.9%
- Capital adequacy ratio: 15.40%
SBI shares traded at ₹980.40, compared with the previous close of ₹977.75. Market capitalisation stood at ₹9,05,523 crore.
ICICI Bank Ltd
ICICI Bank’s net NPA ratio declined to 0.33% as of March 31, 2026, from 0.37% at the end of December 2025.
Other asset-quality details:
- Net additions to gross NPAs: ₹1,174 crore in Q4FY26
- Q4FY25 net additions: ₹1,325 crore
- Provision coverage ratio: 75.8%
- NII: ₹88,075 crore in FY26, up from ₹81,165 crore in FY25
The stock traded at ₹1,245, lower than its previous close of ₹1,262.20. Market capitalisation was ₹8,92,741 crore.
Punjab National Bank
PNB’s net NPA ratio fell to 0.29% as of March 31, 2026, from 0.40% a year earlier.
The gross NPA ratio improved by 100 basis points to 2.95%.
FY26 numbers:
- Operating profit: ₹29,290 crore, up 9.2%
- Net profit: ₹16,904 crore, up 1.6%
- Additional tax liability: ₹3,324 crore
PNB shares traded at ₹106.25, compared with the previous close of ₹106.85. Market capitalisation stood at ₹1,22,112 crore.
TL;DR:
SBI, ICICI Bank, Bandhan Bank, Indian Overseas Bank and PNB reported lower net NPA ratios in FY26, showing better asset quality across both public and private sector lenders.
AI summary:
- SBI’s net NPA ratio improved to 0.39%.
- ICICI Bank’s net NPA ratio declined to 0.33%.
- IOB reported net NPAs of 0.21%.
- PNB’s net NPA ratio fell to 0.29%.
- Bandhan Bank’s net NPA ratio improved to 1.0%.
