New Delhi [India], December 12 (ANI): The gross NPA ratio of public sector banks declined to 3.12 per cent in September 2024 from 4.97 per cent in March 2015 and a peak of 14.58 per cent in March 2018, the government stated on Thursday, reaffirming the robustness of the banking system.

The government emphasised its proactive support for the banking ecosystem, addressing both business needs and employee welfare to ensure stability, transparency, and growth.

Also Read | Places of Worship Act Validity: Supreme Court Restrains Courts in Country Not to Entertain, Pass Orders on Suits Related to Religious Places.

Over the past decade, the government highlighted multiple citizen- and staff-centric reformative initiatives undertaken to strengthen the sector.

The Reserve Bank of India (RBI) initiated the Asset Quality Review (AQR) in 2015 to identify and address stress within the banking system. This led to transparent recognition by banks and the withdrawal of special treatment for restructured loans. Stressed accounts were reclassified as Non-Performing Assets (NPAs), and expected losses on stressed loans, previously unaccounted for, were provided for, resulting in higher NPAs that peaked in 2018.

Also Read | RRB JE Exam 2024 Admit Card Out at rrbapply.gov.in: Hall Ticket for 7,951 Junior Engineer Posts CBT 1 Examination Released, Know Steps To Download.

During the financial year 2023-24, public sector banks (PSBs) recorded their highest-ever aggregate net profit of Rs1.41 lakh crore, compared to Rs1.05 lakh crore in 2022-23. In the first half of 2024-25 alone, PSBs registered a net profit of Rs0.86 lakh crore.

In the past three years, PSBs have paid a total dividend of Rs61,964 crore.

"PSBs continue to expand their reach across every nook and corner of the country to deepen financial inclusion. Their capital base has strengthened, and their asset quality has improved. They are now able to access capital markets independently, without relying on the government for recapitalisation," the government noted.

The number of bank branches has risen from 117,990 in March 2014 to 160,501 in September 2024. Of these, 100,686 branches are located in rural and semi-urban areas.

To advance financial inclusion, 54 crore Jan Dhan accounts have been opened, and over 52 crore collateral-free loans have been sanctioned under flagship schemes such as PM Mudra, Stand-Up India, PM-SVANidhi, and PM Vishwakarma. Under the Mudra scheme, 68 per cent of beneficiaries are women, while under the PM-SVANidhi scheme, 44 per cent of beneficiaries are women. (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)