Public Sector Banks have been reeling under non-performing assets for the last few years.
The Ministry of Finance on Saturday said that the health of public sector banks, which have been reeling under non-performing assets for the last few years, has been restored and a total of 13 banks reported profits in the first half of the current fiscal.
Addressing the media after meeting the chiefs of public sector banks, Finance Minister Nirmala Sitharaman said that the reform measures undertaken by the government have helped bring the banks back to shape.
A statement from the ministry noted that the gross NPAs of the state-run banks have declined from Rs 8.96 lakh crore in March 2018 to Rs. 7.27 lakh crore in September 2019.
"Extensive reforms carried out by the government have restored banks to health, with the gross NPAs of PSBs declining from Rs 8.96 lakh crore in March 2018 to Rs 7.27 lakh crore in September 2019, their provision coverage ratio rising to their highest level in seven years, and banks returning to profitability, with as many as 13 banks reporting profits in H1FY20," the statement said.
It further said that with the Essar Steel resolution decision, banks have recovered Rs 38,896 crore, in addition to Rs 4.53 lakh crore recovered in the last four-and-a-half years.
It said that PSBs have attached assets worth over Rs 2.3 lakh crore over the last three financial years.