Public sector banks in India recorded loan write-offs at multi-year lows in FY25-26, driven by fewer new problem loans and stronger recoveries from existing stressed assets. PTI analysis of earnings showed most PSUs had write-offs lowest in up to eight years, including Bank of Baroda and Punjab National Bank. The shift also coincided with improved asset quality, with gross and net NPA ratios falling to 1.93% and 0.39% by March 31, 2026, alongside sharply higher recoveries and record profitability.
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