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GS3 · Banking

Bank gross NPAs fall to a record low of 2.15%

1 min readNPAs & IBC
Battle IAS current affairs title card: Bank gross NPAs fall to a record low of 2.15% (GS3 · Banking, 9 February 2026)

What happened

  • Gross NPAs of scheduled commercial banks (domestic operations) hit a historic low of 2.15% as of September 2025 [PIB].
  • The ministry credits RBI’s 2015 Asset Quality Review, the 4Rs strategy and the IBC, 2016, which shifted control from debtor to creditor [PIB].

Background

  • The 4Rs are Recognition, Resolution, Recapitalisation and Reforms.

Why it matters

  • Clean balance sheets let banks fund the capex cycle.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, banking and inclusive growth

  1. As per PIB (2026-02-09): gross NPAs of scheduled commercial banks (domestic operations) hit a historic low of 2.15% as of September 2025.
  2. Clean balance sheets let banks fund the capex cycle.
Quotable data point

The ministry credits RBI's 2015 Asset Quality Review, the 4Rs strategy and the IBC, 2016, which shifted control from debtor to creditor.

PIB: Finance: Gross NPAs at historic low, 9 Feb 2026

Exam angle

UPSC

Prelims: NPA, IBC, 4Rs.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Gross NPA (Sept 2025)

Answer (b) & explanation

PIB.

Practice · UPSC

AQR year

Answer (b) & explanation

PIB.

Practice · UPSC

IBC enacted

Answer (b) & explanation

PIB.

Official source: PIB: Finance: Gross NPAs at historic low, 9 Feb 2026

facts from cited sources only; faculty review pending