PSB health restored, 13 banks report profit, says finance minister Nirmala Sitharaman

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.

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.

Union Finance Minister Nirmala Sitharaman during a review meeting with chief executive officers (CEOs) of public sector banks (PSBs) in New Delhi, Saturday, Dec. 28, 2019. (PTI)

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 ₹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 ₹8.96 lakh crore in March 2018 to ₹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 ₹38,896 crore, in addition to ₹4.53 lakh crore recovered in the last four-and-a-half years.

It said that PSBs have attached assets worth over ₹2.3 lakh crore over the last three financial years.