New Delhi, Dec. 16 -- Gross non-performing assets (NPAs) on education loans of public sector banks (PSBs) have declined significantly over the past four years, reflecting improved asset quality, the government informed Parliament.

Minister of State for Finance Pankaj Chaudhary, in a written reply, said that as per Reserve Bank of India (RBI) data, gross NPAs on outstanding education loans of PSBs fell from 7 per cent in FY 2020-21 to 2 per cent in FY 2024-25.

Credit Decisions Governed by Bank Policies

On credit-related matters, the minister said, lending decisions of regulated entities are deregulated and governed by board-approved loan policies, framed within regulatory and statutory guidelines and loan agreement terms.

RBI has advis...