The outlook for India's banking sector is stable with the systemwide non performing assets ratio expected to stay low at 2-2.5%, Moody's Ratings stated Monday. "A strong operating environment, driven by India's robust economic growth, will support the sector's solid fundamentals over the next 12-18 months," the global rating company said. It projected India's real GDP growth at 6.4% for fiscal 2026-27, the fastest pace among G-20 economies. It does not expect further policy rate cuts in FY27 unless there are signs of economic slowdown. The Reserve Bank of India lowered its policy rate by a total of 125 basis points to 5.25% in 2025.