Gross non-performing assets of Public Sector Banks decline by over 6.5% in last 5yrs

Gross non-performing assets of public sector banks have witnessed significant decline in the last five financial years.

The NPAs have reduced from 9.11 percent to 2.58 percent between the period of 2021 to 2025. This was stated by Minister of State of Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

He said, comprehensive measures have been taken by the Government and the Reserve Bank of India to recover and



reduce NPAs.

The Minister informed that Public Sector Banks have set-up specialized stressed assets management verticals and branches for effective monitoring and focused follow-up of NPA accounts. He added that these steps facilitated quicker and improved recoveries.

Deployment of Business correspondents and adoption of the feet-on-street model have also boosted the recovery trajectory of NPAs in banks.