Private sector banks led a broad-based deterioration in data reporting quality in the March 2026 quarter, as the latest round of the Supervisory Data Quality Index (sDQI) showed a marked decline in their scores compared with the previous quarter, according to a report by Business Today.
The sDQI Framework
The sDQI, a quarterly metric compiled by the Reserve Bank of India, tracks the quality of regulatory data submitted by banks across four parameters: accuracy, completeness, timeliness, and consistency. It is updated every quarter to reflect changes in reporting standards and systems.
Private Sector Banks: Steepest Decline
Private sector banks recorded the steepest sequential drop among all segments, with their overall score falling from 90.6 in December 2025 to 89.3 in March 2026. The decline was broad-based:
| Parameter | December 2025 | March 2026 | Change |
|---|---|---|---|
| Accuracy | 87.2 | 85.4 | -1.8 |
| Completeness | 97.6 | 95.5 | -2.1 |
| Timeliness | 90.1 | 88.9 | -1.2 |
| Consistency | 87.4 | 87.5 | +0.1 |
Consistency showed only a marginal improvement, rising from 87.4 to 87.5.
System-Wide Trends
Across all scheduled commercial banks, the aggregate sDQI score eased from 90.9 to 90.7, while the number of banks flagged for potential concern increased from two to three.
- Public sector banks saw their score edge down from 91.0 to 90.7, as gains in timeliness and consistency were offset by weaker accuracy and completeness.
- Small finance banks, which had topped the rankings in the previous quarter, recorded a sharper fall from 91.9 to 90.4, including a loss of their earlier perfect score on completeness.
- Foreign banks were the sole outlier, improving their overall score from 90.7 to 91.4, supported by gains in completeness, timeliness and consistency, even as accuracy dipped slightly.
Parameter-Level Analysis
At a parameter level, the quarterly movement in the index showed a mixed trend. Completeness and consistency improved across the system, while accuracy and timeliness weakened. This indicates that although banks are furnishing more complete datasets, concerns remain around correctness and delays in submission.
Implications for Finance Professionals
For CFOs, treasury directors, and trade finance professionals, the deterioration in data reporting quality — particularly in accuracy and timeliness — raises operational and compliance risks. Accurate and timely regulatory data is critical for banks to manage capital adequacy, liquidity requirements, and credit risk assessments. A decline in data quality may lead to increased regulatory scrutiny, potential penalties, or higher cost of compliance, which could indirectly affect the cost of capital for trade finance and corporate lending. Foreign banks' improvement suggests that international reporting standards may be driving better outcomes, but the overall softening in scores across domestic segments warrants close monitoring by stakeholders relying on bank financial health for trade-related transactions.
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