Mumbai, July 22 -- Ministry of Finance stated in a latest update that gross non-performing assets (NPAs) of public sector banks have been declining during the last five financial years. The NPAs have reduced from 9.11% to 2.58% from March 2021 to o March 2025. Change in credit culture has been effected, with the Insolvency and Bankruptcy Code (IBC) fundamentally changing the creditor-borrower relationship, taking away control of the defaulting company from promoters/owners, and debarring wilful defaulters from the resolution process. To make the process more stringent, personal guarantor to corporate debtor has also been brought under the ambit of IBC.

Published by HT Digital Content Services with permission from Capital Market....