PSBs’ Gross NPAs hit historic low
News:
- According to data shared by the Ministry of Finance, Public Sector Banks (PSBs) strengthened their financial position in FY2025-26, with gross non-performing assets (GNPAs) declining to a historic low of 1.9 per cent (from 2.6 per cent in FY25).
- Gross non-performing assets (GNPA) refers to the total value of gross NPAs for the bank in a particular year. Net Non-Performing Assets (NNPA) subtracts the provisions made by the bank from the gross NPA.
- The capital adequacy ratio (CRAR) also improved to 16.6 per cent from 16.1 per cent a year earlier, indicating stronger capital buffers across public sector lenders.
- CRAR measures a bank’s capital in relation to its risk-weighted assets. As per RBI norms, Indian scheduled commercial banks are required to maintain capital to risk-weighted assets of 9%.