MUMBAI: The gross non-performing asset (GNPA) ratio of public sector banks dropped to a document low of 3.1% as of Sept 2024 – down from 14.6% in March 2018, in accordance to a authorities assertion.
This enchancment follows the implementation of the 4R’s technique launched in 2015: Recognizing NPAs transparently, decision & restoration, recapitalization, and reforms in the monetary system.
PSBs have additionally strengthened their capital adequacy, with the capital-to-risk-weighted belongings ratio enhancing to 15.4% in Sept 2024 from 11.5% in March 2015. Their mixture web revenue for FY24 hit Rs 1.4 lakh crore, an increase from Rs 1.1 lakh crore in the 12 months-in the past interval. Over three years, PSBs distributed Rs 61,964 crore in dividends, reflecting improved shareholder returns.
Inclusivity efforts have expanded as nicely, with 1,00,686 of 1,60,501 financial institution branches situated in rural and semi-city areas. Flagship schemes like Mudra and PM-SVANidhi have elevated entry to credit score, benefiting girls and underserved teams. Advances to MSMEs grew at an annual price of 15%, reaching Rs 28 lakh crore in March this 12 months.
To assist workers, the federal government launched clear switch insurance policies, revised salaries beneath the twelfth Bipartite Settlement, enhanced pensions, and elevated workers welfare funds. These reforms have created a extra sturdy and environment friendly workforce, making certain PSBs stay aggressive and financially sound, the assertion stated.
RBI’s asset high quality evaluate, stricter provisioning for burdened loans, and enhanced restoration efforts performed key roles in addressing NPAs. Along with these, improved asset administration practices and lowered contemporary NPA technology have bolstered PSBs’ monetary well being.
Gross NPAs of PSU banks drop to 3.1% from 14.6% in ’18
