Reserve Bank of India: During the last ten years, the NPA of public sector banks has come down to 3.12 percent. Information given by the Finance Ministry said that in March 2018, the total NPA of public sector banks was 14.58 percent.
Public Sector Banks NPA: The government’s measures are continuously yielding results and there has been a tremendous decline in the NPA of public sector banks. This is the reason that due to all the measures taken by the government, the NPA of government banks has come down to the lowest in the last ten years by the end of September 2024. During the last ten years, it has come down to 3.12 percent. The Finance Ministry said that in March 2018, the total NPA of government banks was 14.58 percent. The government’s four ‘R’ measures like problem recognition, recapitalization, resolution and reform have led to a decline in NPA.
Steps taken to improve the financial system
The ministry said that since 2015, the government has adopted a strategy of four ‘R’ to address the challenges faced by public sector banks (PSBs). Under this, steps were taken to transparently identify NPAs, resolve them and recover bad loans, infuse capital into PSBs and improve the financial system. The capital adequacy ratio in PSBs improved by 3.93 percent to 15.43 percent in September 2024, from 11.45 percent in March 2015.
Government banks reaching every corner of the country
Public sector banks earned the highest profit of Rs 1.41 lakh crore during 2023-24, which was Rs 1.05 lakh crore in 2022-23. This figure was Rs 0.86 lakh crore in the first half of 2024-25. In the last three years, PSBs have given a total dividend of Rs 61,964 crore. The Finance Ministry said, ‘Public sector banks are expanding their reach to every corner of the country to increase financial inclusion. Their capital base has strengthened and their asset quality has improved. Now they are able to raise capital from the market instead of depending on the government for capital.’
More than 52 crore loans sanctioned without guarantee
To strengthen financial inclusion in the country, 54 crore Jan Dhan accounts have been opened and more than 52 crore loans have been sanctioned without any guarantee under different major financial schemes… PM-Mudra, Stand-up India, PM-Swanidhi, PM Vishwakarma… The Finance Ministry said that under the Mudra scheme, 68 percent of the beneficiaries are women and under the PM-Swanidhi scheme, 44 percent of the beneficiaries are women.
The number of bank branches is increasing
The number of bank branches increased to 1,60,501 in September 2024 from 1,17,990 in March 2014. Out of 1,60,501 branches, 1,00,686 branches are in rural and townships. According to the Finance Ministry, the gross debt of scheduled commercial banks has increased significantly to Rs 175 lakh crore in March 2024. It had increased from Rs 8.5 lakh crore to Rs 61 lakh crore during 2004-2014.
