The recent decline in the non-performing loan (NPL) ratio, from 35.73 percent in September 2025 to 30.60 percent in December, may appear encouraging.

The recent decline in the non-performing loan (NPL) ratio, from 35.73 percent in September 2025 to 30.60 percent in December, may appear encouraging.

Commercial banks are preparing a sweeping crackdown on defaulters as non-performing loans (NPLs) climb to 15.6 per cent of gross loans in the first quarter.