New Delhi, July 22 -- The government on Tuesday said that the gross non-performing assets (NPA) ratio of public sector banks (PSBs) has declined from 9.11% in March 2021 to 2.58% in March 2025, marking a consistent improvement over the past five financial years.

In a written reply to a question in the Rajya Sabha, minister of state for finance Pankaj Chaudhary said gross NPAs of PSBs stood at Rs.6.16 trillion as of 31 March, 2021, and have since dropped by more than half to Rs.2.83 trillion as of 31 March, based on provisional RBI data.

Chaudhary attributed this sharp reduction to comprehensive measures taken by the government and the Reserve Bank of India (RBI) to reduce and recover NPAs.

He said the Insolvency and Bankruptcy Code (IB...