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 Rs 1.41 lakh crore during FY2023-24, against net profit of Rs 1.05 lakh crore in FY2022-23, and recorded Rs 0.86 lakh crore in the first half of FY2024-25.
“Gross advance of scheduled commercial banks stood at Rs 175 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.
“Total number of operative KCC accounts as of September 2024 stood at 7.71 crore with total outstanding of Rs 9.88 lakh crore,” it added.
The MSME advances registered a CAGR of 15 per cent during the last three years. Total MSME advances (as of March 31, 2024) stood at Rs 28.04 lakh crore, posting an annual growth of 17.2 per cent.
The gross advances of Scheduled Commercial Banks grew from Rs 8.5 lakh crore to 61 lakh crore during 2004-2014, which has significantly increased to Rs 175 lakh crore in March 2024, said the ministry.
To deepen financial inclusion in the country, 54 crore Jan Dhan accounts and more than 52 crore collateral-free loans under various flagship financial inclusion schemes (PM Mudra, Stand-Up India, PM-SVANidhi, PM Vishwakarma) have been sanctioned.
Under the Mudra scheme, 68 per cent of beneficiaries are women and under the PM-SVANidhi scheme, 44 per cent of beneficiaries are women.
RBI initiated an asset quality review (AQR) in 2015 to identify and address the issue of stress in the banking system, under which, after transparent recognition by banks and withdrawal of the special treatment of restructured loans, stressed accounts were reclassified as NPAs and expected losses on stressed loans, not provided for earlier as a result of the special treatment, were provided for, resulting in higher NPAs which peaked in 2018.
Since 2015, the government implemented a comprehensive 4R strategy of Recognising NPAs transparently, Resolution and Recovery, Recapitalising PSBs, and Reforms in the financial system to address the challenges faced by PSBs.
(IANS)
