India, June 8 -- Asset quality remains one of the most important indicators of a bank's financial health, as lower non-performing assets reflect stronger credit underwriting, efficient recovery mechanisms, and improved balance-sheet strength. A declining Net NPA ratio also enhances profitability by reducing provisioning requirements and improving capital efficiency.

In FY26, several leading Indian banks reported a notable improvement in their asset quality, with Net NPA ratios declining compared to the previous year. The reduction was supported by stronger recoveries, lower slippages, and prudent risk management practices, highlighting the sector's continued progress in strengthening its loan books.

Bandhan Bank Ltd Bandhan Bank Limited...