Archive · 23 Jul 2025
RBI and Government Effort Reduces Public Bank NPAs
Imagine banks have loans, and sometimes people can't pay them back.
These are called NPAs, like bad loans.
The government and RBI worked together to make these bad loans go down.
They did this by making sure banks checked if people could pay back the money before giving them loans, and by using a special law called IBC to help with the bad loans.
This is like helping the banks to become healthier and making sure the money is managed well.
Gross NPAs of public sector banks have decreased to 2.58% in 2025.
The reduction in NPAs is a result of the combined efforts of the Reserve Bank of India (RBI) and the Union government.
The Insolvency and Bankruptcy Code (IBC) was implemented to address stressed assets.
The RBI's Asset Quality Review (AQR) played a crucial role in preventing loans from being classified as NPAs.
Loan disbursement processes have been strengthened, with banks now reviewing credit history and repayment capacity.
- Who
- The Reserve Bank of India (RBI) and the Union government.
- What
- Reduction in Gross Non-Performing Assets (NPAs) of public sector banks.
- When
- NPAs decreased to 2.58% in 2025.
- Where
- India
- Why
- Due to the joint initiatives of the RBI and the government.
- Gross NPA Percentage (2025)
- 2.58%
- Initiatives
- RBI and Union Government collaboration
- Government Initiative
- Implementation of IBC
- RBI Initiative
- Asset Quality Review (AQR)
- Total Gross NPAs (March 2021)
- Rs 6,16,616 crore
- Total Gross NPAs (March 2025)
- Rs 2,83,650 crore