Lok Sabha Question No. 3605 (UNSTARRED), answered on 2025-08-11
Subject: NPA Recovery by PSBs
Ministry: FINANCE
Asked by: Thiru Dr. S Jagathratchakan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO- 3605

ANSWERED ON MONDAY, AUGUST 11, 2025/SRAVANA 20, 1947 (SAKA)

## NPA RECOVERY BY PSBs

## 3605. SHRI S JAGATHRATCHAKAN:

Will the Minister of FINANCE be pleased to state:-

(a)  the  total  amount  of  Non-Performing  Assets  recovered  by  public  sector  banks during the last 10 years, bank-wise;

- (b)  the  reforms  undertaken  by  the  Government  to  strengthen  banking  sector governance and operational efficiency;
- (c)  the  measures  implemented  to  improve  credit  flow  to  micro,  small  and  medium enterprises including the target allocation and achievements;
- (d)  the  progress  made  in  digital  banking  initiatives  including  the  number  of  digital transactions processed and the percentage growth over the previous year; and
- (e)  the  steps  taken  to  enhance  financial  inclusion  through  banking  sector  reforms including the number of new bank accounts opened and rural penetration achieved?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a):  Bank-wise  details  of  aggregate  recovery  made  in  non-performing  assets  (NPAs) and written-off loans, by Public Sector Banks (PSBs), during the last 10 financial years (FYs), are at Annex .

(b):  Over  the  last  few  years various  measures  to  address  the  issues  related  to  credit discipline,  responsible  lending,  improved  governance,  adoption  of  technology,  and proper  regulation  of  Co-operative  banks  have  been  taken  by  the  Government  / Reserve Bank of India (RBI.) These include, inter alia , the following:

- (i) Credit discipline has been instilled through -
- (1) enactment of the Insolvency and Bankruptcy Code (IBC);
- (2) setting  up  of  the  Central  Repository  of  Information  on  Large  Credits (CRILC)  by  RBI  to  monitor  corporate  loans  and  systematic  checking  of high-value accounts for wilful default and fraud.
- (ii) Recognition and resolution of stressed Assets - To protect financial institutions in  case  of  default/delay  in  payment  by  large  borrowers,  multiple  steps  have been taken viz. :
- (1) putting in place a framework  for early recognition  and  time-bound resolution of stress.
- (2) automated Early Warning Systems to detect and reduce slippage of accounts into  NPAs  using  third-party  data  and  workflow  for  time-bound  remedial actions.
- (3) strengthening Market based mechanisms to better manage the credit risk on the  balance  sheets  through  a  comprehensive  framework  for  transfer  of stressed assets to eligible transferees.
- (4) National Asset Reconstruction Company Limited (NARCL) has been set up to consolidate and takeover stressed debt, fragmented across various lenders and thereafter manage and dispose it off to buyers for better realisation.
- (iii) Governance Reforms in PSBs have been carried out through reforms like armslength  selection  of  top  management  through  Financial  Services  Institutions Bureau, introduction of Non-Executive  chairmen  in  Nationalised Banks, widening talent pool and instituting performance-based extension for Managing Directors.
- (iv) Enhanced Access & Service Excellence (EASE) reforms have enabled objective and  benchmarked  progress  on  all  key  areas  in  PSBs such  as  governance, prudential lending, risk management, technology- and data-driven banking, and outcome-centric HR.
- (v) Amalgamation  of  PSBs  has  led  to  economies  of  scale,  increase  financial capacity, technology adoption and overall efficiency enhancement.
- (vi) Massive Technology adoption in banking has been instrumental in expanding financial inclusion, improving efficiency, and enabling real-time service delivery. Digital  payment  transactions  have  grown  phenomenally as  a  result  of  various initiatives viz., Jan-Dhan -Aadhaar -Mobile  (JAM)  linkage,  interoperable  Bank Mitras, Unified Payments Interface (UPI) and Direct Benefit Transfers (DBTs).
- (vii) The Banking Regulation (Amendment) Act, 2020 was brought in to enhance the governance, financial stability, and regulatory oversight of co-operative banks, which serve millions of citizens, particularly in rural and semi-urban areas.
- (viii) The  Banking  Laws  (Amendment)  Act,  2025  has  been  notified  to  enhance governance  standards,  strengthen  protection  for  depositors  and  investors, improve audit quality in PSBs, shift statutory reporting by banks to the RBI and streamline nomination processes for customer convenience.

(c): The measures implemented to improve credit flow to Micro, Small and Medium Enterprises (MSMEs) and achievements are as under:

- (i) Mutual  Credit  Guarantee  Scheme  for  MSMEs  (MCGS-MSME)-  It  is  a government-backed  initiative  designed  to  help  MSMEs  access  loans  to  grow their  businesses.  This  scheme  offers  credit  guarantee,  making  it  easier  for MSMEs  to  obtain  loans,  especially  for  purchasing  essential  equipment  and machinery. The Scheme provides credit guarantee cover to lenders (Scheduled

Commercial  Banks,  All  India  Financial  Institutions,  NBFCs)  for  their  term loans up to Rs. 100 crore to MSMEs for their projects involving purchase of equipment/machinery. The Scheme has been launched recently and is valid till issue of guarantees on loans cumulating to Rs. 7 lakh crore or 4 years from the date of issue of guidelines ( i.e. 27.1.2025), whichever is earlier.

- (ii) Emergency Credit Line Guarantee Scheme (ECLGS) - ECLGS provided 100% guarantee cover to Member lending Institutions (MLIs) in respect to the credit facility extended by them to eligible borrowers, including MSMEs and business enterprises for helping them meet their operational liabilities and restarting their businesses. The Scheme was valid till 31.3.2023 and provided liquidity support of Rs. 3.68 lakh crore to 1.19 crore businesses, of which loans amounting to Rs. 2.42 lakh crore have been sanctioned to 1.13 crore MSMEs under ECLGS.
- (iii) Subsequent  to  Union  Budget  2024-25  announcement,  the  Union  Finance Minister had launched  New  Credit  Assessment  Model  for  MSMEs  on 06.03.2025.  The  model  leverages  the  digitally  fetched  and  verifiable  data  and devises automated journeys for MSME  loan appraisal using objective decisioning for all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank (NTB) MSME borrowers.
- (iv) Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE), under  the  administrative  purview  of  Ministry  of  MSME,  provides  guarantee cover up to 85%, for loans amounting to Rs. 10 crore or below, extended by eligible  Member  Lending  Institution  (MLIs)  to  Micro  and  Small  Enterprises (MSEs). The annual guarantee fee has been reduced which ranges from 0.37% to  1.20%.  As  on  31.07.2025,  CGTMSE  has  approved  1.22  crore  number  of cumulative guarantees worth Rs. 10.50 lakh crore.

(d): The total volume of digital payment transactions in the country has increased from 2,071  crore  in  FY  2017-18  to  22,831  crore  in  FY  2024-25,  growing  at  a  CAGR  of 41%. During the same period, the value of transactions has grown from Rs. 1,962 lakh crore to Rs. 3,509 lakh crore.

Further, the total monthly volume of digital payment has increased from 1,739 crore in  June  2024  to  2,099  crore  in  June  2025.  During  the  same  period  the  value  of transactions has increased from Rs. 244 lakh crore in June 2024 to Rs. 264 lakh crore in June 2025.

UPI transactions, in particular,  have  grown  from 92 crore  in  FY  2017-18  to  18,587 crore in FY 2024-25, with a CAGR of 114%. During the same period, the value of transactions has grown from Rs. 1.10 lakh crore to Rs. 261 lakh crore.

In July 2025, UPI  reached another milestone recording over 1,946.79 crore transactions in a single month for the first time.

(e):  Pradhan  Mantri  Jan-Dhan  Yojana  (PMJDY)  has  been  successful  in  increasing banking  penetration  to  promote  financial  inclusion  across  the  country.  As  on 25.07.2025,  a  total  of  55.98  crore  Jan-Dhan  accounts  with  a  deposit  balance  of  Rs.

2,61,982 crore have been opened under PMJDY. Out of the above, (55.8%) Jan-Dhan accounts belong to women and about (66.7%) PMJDY accounts have been opened in rural areas.

The  opening  of  Jan-Dhan  accounts  has  facilitated  the  coverage  of  various  social security schemes amongst the unorganized sections of the society. As on 23.07.2025, the coverage is as under.

- (i) Under  Pradhan  Mantri  Jeevan  Jyoti  Bima  Yojana  (PMJJBY),  24.27  crore cumulative enrolments have been done to provide life insurance cover of Rs. 2 lakh for death due to any reason.
- (ii) Under Pradhan Mantri Suraksha Bima Yojana (PMSBY), 52.40 crore cumulative enrolments have been done to provide one-year accidental cover of Rs. 2 lakh (death or  permanent  total disability) and  Rs. 1 lakh (permanent  partial disability).
- (iii) Under  Atal  Pension  Yojana  (APY)  as  on  25.07.2025,  8.00  crore  cumulative enrolments have been done to provide monthly pension to eligible subscribers.

Further, with the objective of "Funding the Unfunded" and to promote entrepreneurship, especially among the unorganized small entrepreneurs such as street vendors, the coverage of credit linked schemes launched by the Government, inter-alia , are as under.

- (i) Under Pradhan Mantri Mudra Yojana (PMMY), as on 27.06.2024, 5,385.07 lakh cumulative  loans  amounting  to  Rs.  35.13  lakh  crore  have  been  sanctioned  to provide collateral-free institutional finance to micro/small business units up to Rs. 20 lakh for income generating activities in the sectors such as manufacturing, trading, services and activities allied to agriculture.
- (ii) Under Stand Up India Scheme, as on 31.03.2025, 2.75 lakh cumulative loans amounting  to  Rs.  62,792  crore  have  been  sanctioned  to  Scheduled  Caste  / Schedule Tribe and Women entrepreneurs for setting up greenfield projects in the  sectors  such  as  manufacturing,  trading,  services  and  activities  allied  to agriculture.

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## Lok Sabha Unstarred question no. 3605, regarding NPA Recovery by PSBs

## Aggregate recovery made in non-performing assets and written-off loans by Public Sector Banks (PSBs)

(Amounts in crore Rs.)

| Bank                   | FY 2015-16   | FY 2016-17   | FY 2017-18   | FY 2018-19   | FY 2019-20   | FY 2020-21   | FY 2021-22   | FY 2022-23   | FY 2023-24   | FY 2024-25 #   |
|------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|----------------|
| Bank of Baroda 1       | 2,910        | 6,377        | 7,093        | 13,603       | 8,664        | 8,357        | 8,564        | 9,572        | 7,199        | 7,756          |
| Bank of India          | 3,798        | 4,895        | 14,348       | 8,964        | 8,443        | 4,684        | 7,858        | 7,236        | 7,720        | 9,769          |
| Bank of Maharashtra    | 714          | 848          | 1,903        | 2,269        | 1,660        | 2,302        | 1,816        | 1,876        | 1,610        | 1,816          |
| Canara Bank 3          | 3,239        | 3,644        | 5,172        | 11,950       | 13,300       | 10,318       | 11,324       | 17,029       | 9,352        | 9,521          |
| Central Bank of India  | 3,198        | 2,721        | 3,487        | 5,799        | 4,290        | 2,972        | 3,441        | 4,505        | 3,402        | 3,374          |
| Indian Bank 4          | 3,343        | 2,501        | 2,910        | 4,392        | 4,347        | 4,473        | 5,087        | 7,039        | 6,654        | 6,231          |
| Indian Overseas Bank   | 1,814        | 2,118        | 4,507        | 4,409        | 3,025        | 1,668        | 1,397        | 1,229        | 3,614        | 3,342          |
| Punjab and Sind Bank   | 251          | 215          | 466          | 1,043        | 643          | 1,004        | 1,273        | 1,818        | 1,600        | 890            |
| Punjab National Bank 2 | 10,894       | 15,603       | 8,971        | 21,320       | 18,092       | 13,939       | 19,229       | 16,309       | 13,206       | 9,931          |
| State Bank of India 6  | 14,114       | 16,159       | 15,181       | 35,062       | 31,895       | 23,678       | 18,125       | 20,122       | 15,169       | 14,250         |
| UCO Bank               | 1,369        | 2,039        | 1,862        | 3,440        | 3,719        | 2,155        | 2,845        | 2,978        | 2,227        | 3,326          |
| Union Bank of India 5  | 2,342        | 3,238        | 4,604        | 8,823        | 10,557       | 7,727        | 8,601        | 12,827       | 11,277       | 9,236          |

Source: RBI ( # provisional data for FY 2024-25)

* The figures of the banks merged are incorporated into those for the respective bank into which they were merged. The details of mergers of PSBs are as under.

1 Vijaya Bank and Dena Bank were merged into Bank of Baroda w.e.f. 01.04.2019.

2 Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank w.e.f. 1st April, 2020.

3 Syndicate Bank was merged into Canara Bank w.e.f. 01.04.2020.

4 Allahabad Bank was merged into Indian Bank w.e.f. 01.04.2020.

5 Andhra Bank and Corporation Bank were merged into Union Bank of India w.e.f. 01.04.2020.

6 Associate banks of State Bank of India (namely, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore and Bharatiya Mahila Bank Limited) were merged with the State Bank of India w.e.f. 01.04.2017.

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