Gross non-performing assets (GNPAs) for banks are forecasted to drop to a decade-low of 2.5% in FY25, says Crisil. Concerns remain over increasing stress in unsecured loans and microfinance sectors. Credit growth is expected to moderate to 14%, down from 16% in FY24. The corporate sector's improved asset quality will boost the overall system, despite profitability challenges from rising deposit costs.
