Gross NPAs of public sector banks at Rs 3.16 lakh crore, over 3% of outstanding loans

Public sector banks in India are facing challenges with a growing volume of non-performing assets (NPAs), which reached Rs 3.16 lakh crore, or over 3% of total loans. The Ministry of Finance has highlighted this issue and stressed the need for better recovery and asset management practices. Additionally, the sector is also grappling with the rise in dormant Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, which were opened to increase financial inclusion. The government is focusing on strengthening the recovery framework and improving the health of public sector banks to ensure that the financial sector remains stable and sustainable.