PSBs' Gross NPAs Fall To Multi-Decade Low Of 1.9% In FY26: Finance Ministry

New Delhi, Jul 29 (KNN) Public sector banks (PSBs) recorded a significant improvement in financial health during FY26, with record profits, stronger deposits and gross non-performing assets (GNPAs) declining to a multi-decade low, the Finance Ministry said.

PSBs' Gross NPAs Fall to Multi-Decade Low

The gross NPA ratio of PSBs fell to 1.9 percent as of March 31, 2026, from 2.6 percent a year earlier and 7.3 percent at the end of FY22.

PSBs' net profit increased to Rs 1.98 lakh crore in FY26 from Rs 1.78 lakh crore in FY25, while total deposits rose to Rs 156.3 lakh crore from Rs 142 lakh crore during the same period.

Retail loans also recorded stronger growth, expanding 19.8 percent in FY26 compared with 17.7 percent in FY25, reported Money Control.

RRBs Record Highest-Ever Profit

Regional rural banks (RRBs) also reported improved financial performance, with their consolidated net profit reaching a record Rs 10,177 crore in FY26, up from Rs 6,820 crore in FY25, according to a separate Finance Ministry release.

The gross NPA ratio of the country's 28 RRBs declined marginally to 5.3 percent in FY26 from 5.4 percent in the previous financial year.

Government Reviews Rural Financial Inclusion

The government said it regularly reviews RRBs' progress in expanding financial inclusion across rural and remote areas.

Financial inclusion initiatives, including the Pradhan Mantri Jan-Dhan Yojana, Pradhan Mantri MUDRA Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana, are monitored periodically by the Department of Financial Services.

(KNN Bureau)