Banks recorded a massive net profit of $37.5 billion (a 39% year-on-year increase) in FY24, with public sector banks contributing nearly half ($17.5 billion).
The sector maintains a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 17.4% , well above regulatory requirements.
Lending is expanding at a healthy rate of 10.4%–11.3% for FY26, driven by retail credit and manufacturing. 2. Major Regulatory Reforms (April 2026) Indian banking sector
The RBI officially cancelled Paytm Payments Bank's licence on April 24, 2026, due to persistent compliance failures, signaling a zero-tolerance policy for governance lapses.
Foreclosure charges on floating-rate loans (home/car) have been removed, and biometric authentication (fingerprint/Face ID) is becoming compulsory for digital payments. Banks recorded a massive net profit of $37
Banks are transitioning from an "incurred loss" model to a forward-looking ECL framework , aligning with global IFRS 9 standards.
The Reserve Bank of India (RBI) has recently implemented significant updates to modernize the system: Banks are transitioning from an "incurred loss" model
As of April 1, 2026, banks must update credit scores (CIBIL) every 7 days instead of monthly for better real-time tracking.