India’s banking sector is in its strongest shape in years. Capital buffers are high, bad loans are at record lows, and profitability remains steady. As of December 2024, the capital adequacy ratio stood at 16.4%, gross non-performing assets had fallen to 2.4%, and return on assets reached 1.37%. These are not just numbers. They reflect a hard-won recovery built on reforms, recapitalisation, and improved risk discipline.Yet beneath this surface strength lies a newer, less visible vulnerability. As banks digitise at scale and embed themselves in broader tech ecosystems, they are increasingly exposed to operational risks. These include not just internal errors or process failures, but disruptions arising from external dependencies, third-party vendors, and a complex web of digital infrastructure.
.png)
