Gross NPAs Of Scheduled Commercial Banks Decline To 1.73% In March 2026

New Delhi, Jul 22 (KNN) Gross non-performing assets (NPAs) of scheduled commercial banks declined to 1.73 percent as of March 2026, down from 2.75 percent at the end of March 2024, following a series of measures undertaken by the government and the Reserve Bank of India (RBI), the government informed the Rajya Sabha.

Replying to a question, Minister of State for Finance Pankaj Chaudhary said RBI data provides details of NPAs across public sector banks, private sector banks, foreign banks, small finance banks and urban cooperative banks since 2021. 

NABARD maintains data for rural cooperative banks, while the Ministry of Cooperation does not maintain NPA data for multi-state cooperative societies.

Write-Offs Do Not Waive Borrowers' Liabilities

The minister clarified that loan write-offs are an accounting exercise undertaken in accordance with the RBI's Resolution of Stressed Assets Directions, 2025, to clean banks' balance sheets of bad loans that are considered difficult or uneconomical to recover.

He emphasised that write-offs do not amount to waiver of loans, and borrowers remain liable to repay their dues while banks continue recovery proceedings.

Government Highlights Measures To Reduce NPAs

The government said several reforms have contributed to the sustained decline in NPAs over the past eight financial years.

These include the implementation of the Insolvency and Bankruptcy Code (IBC), 2016, amendments to the SARFAESI Act and the Recovery of Debt and Bankruptcy Act, establishment of automated Early Warning Systems (EWS) in public sector banks, creation of Stressed Asset Management Verticals, and the RBI's prudential framework for early resolution of stressed assets.

Reforms For Multi-State Cooperative Societies

The government also highlighted provisions introduced under the Multi-State Cooperative Societies (Amendment) Act and Rules, 2023, aimed at improving governance and protecting members.

These include the appointment of a Cooperative Ombudsman for grievance redressal, designation of Information Officers to improve transparency, and mandatory concurrent audits for multi-state cooperative societies with turnover or deposits exceeding Rs 500 crore, to facilitate early detection of fraud and financial irregularities.

(KNN Bureau)