Sanjeev Sanyal Reacts as Bank NPAs Hit Record Low: "Impossible Goal Achieved"
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News18•30-01-2026, 18:29
Sanjeev Sanyal Reacts as Bank NPAs Hit Record Low: "Impossible Goal Achieved"
- •India's banking sector achieved a significant milestone with net non-performing assets (NNPAs) falling to a record low of 0.5 percent, as per the Economic Survey 2025-26.
- •Principal Economic Advisor Sanjeev Sanyal highlighted this improvement, recalling that resolving the NPA crisis seemed an "impossible" task when he joined the government in 2017.
- •The Economic Survey indicates the banking system's stability is bolstered by strong capital buffers, low NPA ratios, and rising profitability.
- •Scheduled commercial banks (SCBs) reported multi-decadal lows in gross NPAs and robust capital-to-risk-weighted-asset ratio of 17.2 percent.
- •Recovery rates for NPAs have nearly doubled since FY18, and profitability indicators for SCBs remain healthy, with strong profit growth in FY25.
Why It Matters: India's banking sector has achieved a historic turnaround, with NPAs at record lows and improved financial health.
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