‘Bad loans of PSBs down from 14.6 per cent in 2018 to 5.53 per cent in 2022’

The reforms taken by the government have reduced the size of bad loans of the public sector banks, said the Minister of State Finance, Bhagwat Karad on Monday.
For representational purposes
For representational purposes
Updated on
2 min read

NEW DELHI: The reforms taken by the government have reduced the size of bad loans of the public sector banks, said the Minister of State Finance, Bhagwat Karad on Monday. The Gross Non-Performing Assets (NPA) ratio has declined from the peak of 14.6% in March 2018 to 5.53% in December 2022, he told the Parliament.

“Government implemented a comprehensive 4R’s strategy of Recognising NPAs transparently, Resolution and recovery, Recapitalising PSBs, and Reforms in the financial ecosystem,” said Minister of State Finance, Bhagwat Karad in Parliament. “Major banking reforms undertaken by the Government over the last eight years addressed credit discipline, responsible lending and improved governance, besides adoption of technology, amalgamation of banks, and maintaining general confidence of bankers. As a result of implementation of Reforms, performance of PSBs has significantly improved,” he said.

All Public Sector Banks (PSBs) are in profit with aggregate profit being Rs 66,543 crore in 2021-22, and that further increased to Rs 70,167 crore in first nine months of current financial year, Minister of State for Finance said in a written reply to Lok Sabha. At the same time, resilience has increased with provision coverage ratio of PSBs rising from 46% to 89.9% in December 2022, he said, adding capital adequacy ratio of PSBs improved significantly from 11.5% in March 2015 to 14.5% in December 2022. Total market cap of PSBs (excluding IDBI Bank, which was categorised as private sector bank in January 2019) rose from Rs 4.52 lakh crore in March 2018 to Rs 10.63 lakh crore in December 2022, he said.

PSU profit up in 9 months of FY23 to Rs 70,167 crore 

All Public Sector Banks (PSBs) are in profit with aggregate profit being Rs 66,543 crore in 2021-22, and that further increased to Rs 70,167 crore in first nine months of current financial year, Minister of State for Finance said in a written reply to Lok Sabha.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com