Finance Ministry reports PSU banks’ gross NPAs fell from 9.11% to 2.58% between March 2021 and March 2025.

• IBC reforms improved credit culture, limiting defaulters’ control and restricting wilful defaulters in the resolution process.
• Personal guarantors to corporate debtors are now included under the IBC to tighten recovery and accountability measures.
• Declining NPAs reflect stricter governance and resolution frameworks, enhancing public sector banks’ financial health.