The Reserve Bank of India (RBI), in its Trend and Progress of Banking in India 2024–25 report, drawing on NABARD data, has flagged significant asset quality stress in select State Co-operative Banks (StCBs), with gross non-performing assets (NPAs) exceeding 20 per cent in Jammu & Kashmir, Arunachal Pradesh, Manipur and the Andaman & Nicobar Islands as of March 31, 2025.
At the all-India level, the asset quality of StCBs showed marginal improvement, with gross NPAs easing to 4.8 per cent of loans outstanding from 4.9 per cent a year earlier.
The Northern Region emerged as the best performer, reporting NPAs of 2.1 per cent. Haryana (0.1 per cent), Delhi (0.4 per cent) and Rajasthan (0.3 per cent) recorded exceptionally low NPAs. In contrast, Jammu & Kashmir reported the highest NPAs at 56.3 per cent, indicating acute financial stress.
In the North-Eastern Region, regional NPAs stood at 8.9 per cent. Arunachal Pradesh recorded NPAs of 27.1 per cent, while Manipur’s NPAs stood at 20.8 per cent.
The Eastern Region reported an improvement, with NPAs declining to 3.5 per cent, aided by Odisha’s strong asset quality (0.9 per cent). However, the Andaman & Nicobar Islands continued to remain under stress with NPAs of 25.8 per cent.
The Western Region posted NPAs of 7.0 per cent, driven mainly by Maharashtra (8.7 per cent), while the Southern Region recorded NPAs of 5.0 per cent. Kerala remained stressed at 11.6 per cent, even as Telangana (0.1 per cent) and Andhra Pradesh (0.8 per cent) maintained robust asset quality.