NPAs At PSBs Fall To 3.12% In 10 Yrs

New Delhi: The gross non-performing asset (NPA) ratio of public-sector banks (PSBs) declined to 3.12 per cent in September this year, from 4.97 per cent in March 2015 and from a peak of 14.58 per cent in March 2018, the Centre informed on Thursday.

The Ministry of Finance said in a statement that public-sector banks (PSUs) recorded the highest ever aggregate net profit of Rs1.41 lakh crore during FY2023-24, against net profit of Rs1.05 lakh crore in FY2022-23, and recorded Rs0.86 lakh crore in the first half of FY2024-25.

“Gross advance of scheduled commercial banks stood at Rs175 lakh crore in March 2024,” the ministry informed.

The Capital to Risk (Weighted) Assets Ratio (CRAR) of PSBs improved by 393 bps to reach 15.43 per cent in September 2024 from 11.45 per cent in March 2015.

During the last three years, PSBs have paid a total dividend of Rs 61,964 crore, informed the ministry.

“PSBs continue to expand their reach to every nook and corner of the country to deepen Financial Inclusion. Their capital base has strengthened and their asset quality has improved. Now they are able to go to market and access capital instead of depending upon the government for recapitalisation,” said the ministry.

The number of bank branches has gone up from 1,17,990 in March 2014 to 1,60,501 in September 2024 and 1,00,686 branches are in rural and semi-urban (RUSU) areas, informed the ministry.