Banks' Gross NPAs Hit Historic Low of 2.15%: MoS Finance Pankaj Chaudhary

• Gross NPAs of Scheduled Commercial Banks (SCBs) for domestic operations declined to a historic low of 2.15% as of September 2025.
• This continuous decline in gross NPAs has led to reduced provisioning, improving profitability and business growth for banks.
• The government's 4R's strategy (recognising, resolving, recapitalising, and reforms) and RBI's Asset Quality Review (AQR) contributed to this improvement.
• Public Sector Banks (PSBs) saw a sharper decline in NPAs compared to private and foreign banks since March 2018, with their slippage ratio falling to 0.8% in September 2025.
• Key legislative changes like the IBC 2016 and stronger recovery mechanisms have strengthened bank balance sheets and asset quality.