Gross non-premising assets (NPAs) in Public Sector Banks (PSBs) have seen a significant reduction – from 9.11% of March 2025, according to the Minister of Pancaj Chaudhary. He shares this data with a written response to Rajya Sabha on Tuesday, credited to government and RBI efforts for development.
The minister emphasized that the total amount locked in gross npas has declined from Rs 6.16 lakh crore on March 2021 to Rs 2.83 Lakh core on March 2025.
Chaudhary assures the steady development of a multi-pronged approach adopted by the government and the reserve Bank of India (RBI) to reinforce recovery mechanisms and securing the early resolution of poor loans.
“Insolvency and code losses (IBC) changes the borrower’s borrower,” he says IBC ensures that the company’s company losing control of the company.
In addition, corporate debtors are also carried under IBC, with the legal net around the defaulters.
To further recovery efforts to recover:
Securitization changes are made and rebuild financial assets and enforcement of security interests (Sarfaesi), 2002 and the recovery of debts and bankruptcy.
Pecuniary jurisdiction of debt recovery tribunals (DRTS) is enlarged from Rs 10 lakh to Rs 20 lakh allowed DRT-VALUE cases.
Public Sectors Banks also get internal steps:
The formation of specialized weighted assets of handling and branches to monitor and resolve NPAs.
The adoption of business contents and feet-street “model to improve grass fixes.
Prudotal Framework also encourages banks to adopt early resolution plans, with incentives built for easy movement, the minister noted.
To ensure transparency during loan dismantle and repair:
Banks followed RBI approved policies for appreciation of property by independent professionals.
Properties worth Rs 50 crore or more subject to at least two independent valuations.
Before selling properties below the Sarfaesi Act, banks claim and repeat them through informed values.
The RBI also recommends e-auction for asset sales to ensure greater price participation and wider participation.
Chaudhary concludes that these continuous efforts have improved the health of banks in the public sector, putting it on a stronger and stronger folc fouring.
