Bank provisioning at 3-year low on better recoveries, asset quality

Bank loan loss provisioning has hit a three-year low, with 23 of 29 banks reporting lower provisioning year-on-year, driven by sustained recoveries and improving asset quality. CARE Ratings noted the gross NPA ratio dropped to a multi-year low of 1.8% in the March 2026 quarter. Private sector bank provisioning nearly halved sequentially to about 7,236 crore, while public sector bank provisioning fell 20.4% year-on-year to 12,078 crore.