<div>Reserve Bank of India (RBI) Deputy Governor S.S. Mundra said the latest April-June earnings from state-owned lenders showed "stability" in terms of non-performing assets (NPAs), but added the central bank would remain "watchful."</div><div> </div><div>India's banking sector, dominated by more than two-dozen state-run lenders, has been hobbled by its highest bad-loan ratio in a decade as slower economic expansion hurt companies' abilities to service debt.</div><div> </div><div>"I think the results which have come, on the NPA front, there looks like some kind of stability now," Mundra told Reuters on the sidelines of a conference on Wednesday.</div><div> </div><div>"It is not back to the absolutely normal position," he added. "It would need a constant watch from us."<br><br>(PTI)</div>