Gross NPA of PSBs declines to 3.12% in Sep from peak of 14.58% in Mar 2018: Ministry of Finance

The gross non-performing assets (NPA) of public sector banks (PSBs) have decreased significantly, dropping to 3.12% in September 2024 from a peak of 14.58% in March 2018. This reduction reflects the positive impact of banking reforms and improved credit risk management. The Ministry of Finance attributes the decline to aggressive recovery efforts, better loan monitoring systems, and the successful implementation of resolution frameworks like the Insolvency and Bankruptcy Code (IBC). As a result, PSBs have seen stronger financial health, which has helped boost investor confidence and the stability of the banking sector. These improvements are part of a broader effort to clean up the balance sheets of state-run banks.