3 months ago
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The gross non-performing assets (NPA) ratio of Scheduled Commercial Banks (SCBs) for home operations, were astatine a historical debased of 2.15% arsenic of 2025 extremity (provisional data), which is little than 2010-11 level, the Finance Ministry said connected Monday.
Gross NPA has been continuously declining during the past 8 fiscal years.
This continuous diminution successful gross NPAs of SCBs, including Public Sector Banks (PSBs), has led to reduced provisioning by them, which successful crook has improved their profitability, thereby causing affirmative interaction connected the concern growth, the Ministry said.
This besides indicates that the plus prime arsenic good arsenic underwriting has improved successful PSBs supported by a beardown equilibrium expanse and sustained profitability, the Ministry said successful a note.
The Reserve Bank of India (RBI) initiated the Asset Quality Review (AQR) successful 2015, station which the authorities initiated 4R’s strategy of recognising NPAs transparently, resolving and recovering worth from stressed accounts done cleanable and effectual laws and processes, recapitalising PSBs, and reforms successful banks and the fiscal ecosystem to code the occupation of rising NPAs and increasing indebtedness default.
Enabled by these initiatives, a ample driblet successful gross NPAs was achieved by PSBs, arsenic per the note.
RBI has apprised that the information connected gross NPAs of SCBs is not collected by RBI connected monthly basis. However, arsenic per the latest information disposable with RBI, arsenic connected September 30, .2025, for home operations, the gross NPA ratio of SCBs was 2.15%, PSBs 2.50%, Private Sector Banks (PVBs) 1.73% and Foreign Banks 0.80%.
Also, PSBs person a higher diminution successful gross NPA ratio successful examination to PVBs and Foreign Banks since March 2018, the Ministry said successful the note.
