Asset quality of the sector has steadily improved as reflected in the continuous decline in the gross NPAs ratio from 21% as on March 2003 to 6.02% as on March 2015. The gross NPAs are still very high as compared with commercial banks which have Gross NPAs at 4.62% as on March 31, 2015. 12.
The profitability of the UCB sector, too, has shown remarkable improvement as net profit increased to ₹ 34.89 billion during the financial year 2014–15. Return on Assets (RoA) has increased to 0.84% in 2015 and Return on Equity (RoE) has increased to 9.85% in 2015. As regards capital adequacy, it is observed that 1503 UCBs i.e.