The gross NPA ratio of public sector banks declined to 3.12 per cent in September 2024 from 4.97 per cent in March 2015 and a peak of 14.58 per cent in March 2018, the government stated on Thursday, reaffirming the robustness of the banking system.
The government emphasised its proactive support for the banking ecosystem, addressing both business needs and employee welfare to ensure stability, transparency
and growth.
Over the past decade, the government highlighted multiple citizen and
staff-centric reformative initiatives undertaken to strengthen the sector.
The Reserve Bank of India (RBI) initiated the Asset Quality Review (AQR) in 2015 to identify and address stress within the banking system. This led to transparent recognition by banks and the withdrawal of special treatment for restructured loans. Stressed accounts were reclassified as Non-Performing Assets (NPAs), and expected losses on stressed loans, previously unaccounted for, were provided for, resulting in higher NPAs that peaked in 2018.
During the financial year 2023-24, public sector banks (PSBs) recorded their highest-ever aggregate net profit of RsL41 lakh crore, compared to Rs LOS lakh crore in 2022-
23.1n the first half of 2024 25 alone, PSB registered a net profit of Rs0.86 lakh
crore. In the past three years, PSBs have paid a total dividend of Rs61964 crore.
“PSB continue to expand their reach across every nook and corner of the country to deepen financial inclusion. Their capital base has strengthened, and their asset quality has improved. They aren’t in March 2018 now able to access capital markets independently, without relying on the ‘government for recapitalisation,” the government noted.
The number of bank branches has risen from 117.990 in March 2014 10160,501 in September 2024. Of these, 100,686 branchesare located in rural and semi-urban areas.
To advance financial inclusion, 54 crore Jan Dhan accounts have been opened, and over 52 crore collateral-free loans have been sanctioned under flagship schemes such as PM Mudra, Stand-Up India, PMSVANidhi, and PM Vishwakarma. Under the Mudra scheme, 68 per cent of beneficiaries are women, while under the PMSVANidhi scheme, 44 per
cent of beneficiaries are women.
Key Points
NPA drops to 3.12%: Public sector banks reduced NPAs from 14.58% (2018 peak] to
3.12% in September 2024.
Record Rs 1.41 lakh crore profit: PSBs achieved their highest-ever profit in FY 2023-24.
Financial inclusion milestone 54 crore Jan Dhan accounts, 52 crore loans sanctioned, 68% Mudra beneficiaries are women.
Branch network expands: PSBs grew branches to 1.6 lakh, with over 1 lakh
in rural/semi-urban areas.
