Gross non-performing assets ratio for the banking system is set to improve to a decadal best of 2.5 per cent in 2024-25, domestic rating agency Crisil said on Tuesday. It, however, flagged concerns around unsecured exposures like personal loans and credit cards, and also the microfinance (MFI) loans made by lenders, pointing out that the segments are witnessing a surge in stress. Credit growth is expected to moderate to 14 per cent in FY25 from 16 per cent in FY24 on the back of lower economic growth expected at 6.8 per cent as against 8.2 per cent in FY24, and the regulatory restrictions through interventions like higher risk weights on unsecured lending which has made lenders cautious, the agency said. Its senior director and chief ratings officer Krishnan Sitaraman, however, told reporters that the 14 per cent credit growth will place FY25 as the third fastest year over the last decade. GNPAs, which have led to setbacks for the system in the past and have shown a considerable ..