Gross NPA ratio of public sector banks stood at 5.53% in December 2022

21 Mar 2023 , 10:29 AM

According to a statement made on Monday in Parliament, the Indian government has implemented several reforms that have led to a significant improvement in the asset quality of public sector banks. The gross NPA ratio has reduced from its peak of 14.6% in March 2018 to 5.53% in December 2022.

All PSBs are profitable, with an aggregate profit of Rs66,543 crore in 2021-22, which increased to Rs70,167 crore in the first nine months of the current fiscal year, said Minister of State for Finance Bhagwat K Karad in a written reply to Lok Sabha.

The provision coverage ratio of public sector banks (PSBs) has risen from 46% to 89.9% in December 2022, indicating increased resilience, and the capital adequacy ratio of PSBs has improved from 11.5% in March 2015 to 14.5% in December 2022, according to the information shared on Monday. 

The government has implemented various reforms that have significantly improved the asset quality of PSBs, with the gross NPA ratio declining from its peak of 14.6% in March 2018 to 5.53% in December 2022.

The total market capitalization of public sector banks (excluding IDBI Bank, which was classified as a private sector bank in January 2019) has surged from Rs4.52 lakh crore in March 2018 to Rs10.63 lakh crore in December 2022, according to a statement made on Monday.

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