Public sector banks' gross NPA ratio falls to 2.58% in March 2025
On 22 July 2025, the Finance Ministry said the gross NPA ratio of public sector banks fell from 9.11% in March 2021 to 2.58% in March 2025.
Summary
The gross non-performing assets (NPA) ratio of public sector banks fell from 9.11% on 31 March 2021 to 2.58% on 31 March 2025, the Ministry of Finance said on 22 July 2025, citing provisional RBI data. Gross NPAs declined from ₹6,16,616 crore to ₹2,83,650 crore over the period. The Ministry credited measures such as the Insolvency and Bankruptcy Code, amendments to the SARFAESI Act and the Recovery of Debts and Bankruptcy Act, and an increase in the pecuniary jurisdiction of Debt Recovery Tribunals from ₹10 lakh to ₹20 lakh.
Key facts
- Date
- 22 July 2025
- Gross NPA ratio (PSBs)
- 9.11% (Mar 2021) to 2.58% (Mar 2025)
- Gross NPAs
- ₹6,16,616 crore to ₹2,83,650 crore
- Source
- RBI, provisional for FY 2024-25
- DRT jurisdiction
- Raised from ₹10 lakh to ₹20 lakh
Practice MCQs 2 questions
What was the gross NPA ratio of public sector banks as of 31 March 2025, as per the Finance Ministry (July 2025)?
Show answer
Correct answer: B — 2.58%
PIB (22 July 2025): gross NPAs of PSBs reduced from 9.11% (March 2021) to 2.58% (March 2025); 3.47% was March 2024.
As part of NPA recovery measures, the pecuniary jurisdiction of Debt Recovery Tribunals was raised from ₹10 lakh to:
Show answer
Correct answer: A — ₹20 lakh
PIB: the pecuniary jurisdiction of DRTs was increased from ₹10 lakh to ₹20 lakh to let them focus on high-value cases.