Bank of India: The NPA of public sector banks has gone down to 3.12 percent in the last ten years. According to data from the Finance Ministry, 14.58 percent of all loans given by public sector banks were not paid back in March 2018.
Public Sector Banks NPA: The government’s actions are continuing to pay off, and the NPA of public sector banks has dropped by a huge amount. Because of all the steps the government has taken, by the end of September 2024, the NPA of government banks will have dropped to its lowest level in ten years. It has gone down to 3.12 percent in the last ten years. The Finance Ministry said that in March 2018, 14.58 percent of all government bank loans were not paid back. Problems have been recognized, re-capitalized, resolved, and reformed by the government, which has led to a drop in NPA.
Things that were done to make the banking system better
As of 2015, the ministry said, the government has used a four-point plan to help public sector banks (PSBs) deal with problems. In order to improve the financial system and make it easier to see which NPAs there were, steps were taken to settle them and get back the money that was owed on bad loans. Capital coverage ratios in PSBs went up by 3.93 percent from 11.45 percent in March 2015 to 15.43 percent in September 2024.
The most money was made by public sector banks in 2023–24, with a profit of Rs 1.41 lakh crore. In 2022–23, they made Rs 1.05 lakh crore. In the first half of 2024-25, this amount was Rs 0.86 lakh crore. PSU banks have paid out a sum of Rs 61,964 crore in dividends over the last three years. The Finance Ministry said, “To make financial services more available to everyone, public sector banks are expanding their reach to every part of the country.” Their cash has grown and the quality of their assets has gotten better. They no longer have to get money from the government; they can now get it from the market.
More than 52 crore loans were given out without a guarantee.
More than 52 crore loans have been given out without any guarantee under different big financial schemes, and 54 crore Jan Dhan accounts have been opened to help more people get access to money. Stand-up India, PM Swaminathan, PM Vishwakarma, and PM Mudra… The Finance Ministry said that 44% of people who get money from the PM-Swanidhi scheme are women and 68% of people who get money from the Mudra scheme are women.
There are more and more bank offices.
In March 2014, there were 1,17,990 bank branches. By September 2024, there were 1,60,501. Out of the 1,60,501 branches, 1,00,686 are in farms and villages. The Finance Ministry says that listed commercial banks’ gross debt has grown a lot and now stands at Rs 175 lakh crore as of March 2024. From 2004 to 2014, it went up from Rs 8.5 lakh crore to Rs 61 lakh crore.
