India, July 22 -- Public sector banks saw a sharp decline in their gross non-performing assets (NPAs) from Rs.6.17 lakh crore in March 2021 to Rs.2.84 lakh crore in March 2025 mainly because the Insolvency and Bankruptcy Code (IBC) that could remove nonpayers from the company's management and bar wilful defaulters from participating in the resolution process, minister of state for finance Pankaj Chaudhary said.

Gross NPA ratio of public sector banks (PSBs) dropped from 9.11% on March 31, 2021 to 2.58% on March 31, 2025, he told the Rajya Sabha on Tuesday.

Gross non-performing asset ratio is the proportion of PSB's gross NPAs to their total advances in a particular year.

According to the minister, the decline has been consistent over th...