Gross non-performing assets (NPAs) of public sector banks (PSBs) have declined to a decade low of 3.12 per cent at the end of September 2024 from a peak of 14.98 per cent in March 2018 on the back of measures like the 4Rs -- recognition, recapitalisation, resolution, and reform -- taken by the government, the finance ministry said on Thursday.

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Since 2015, the government implemented a comprehensive 4Rs strategy of recognising NPAs transparently, resolution and recovery, recapitalising PSBs, and reforms in the financial system to address the challenges faced by PSBs, it said.

Capital adequacy ratio of PSBs improved 393 bps to reach 15.43 per cent in September 2024 from 11.45 per cent in March 2015, it said.

During 2023-24, PSBs recorded the highest-ever aggregate net profit of Rs 1.41 lakh crore against Rs 1.05 lakh crore in 2022-23, it said, adding that the figure was Rs 0.86 lakh crore in the first half of 2024-25.

In the last three years, PSBs have paid total dividend of Rs 61,964 crore, it said.

"PSBs continue to expand their reach to every nook and corner of the country to deepen financial inclusion. Their capital base has strengthened and their asset quality has improved. Now they are able to go to market and access capital instead of depending on the government for recepitalisation," it said.

To deepen financial inclusion in the country, 54 crore Jan Dhan accounts and more than 52 crore collateral-free loans under various flagship financial inclusion schemes -- PM-Mudra, Stand-Up India, PM-SVANidhi, PM Vishwakarma -- have been sanctioned, it said.

Under the Mudra scheme, 68 per cent of beneficiaries are women and under PM-SVANidhi scheme, 44 per cent of beneficiaries are women, the finance ministry said.

The number of bank branches has gone up from 1,17,990 in March 2014 to 1,60,501 in September 2024. Of 1,60,501 branches, 1,00,686 are in rural and semi-urban (RUSU) areas, it said.

KCC Scheme aims to provide the short-term crop loan to farmers, it said, adding that the total number of operative KCC Accounts as on September 2024 stood at 7.71 crore with total outstanding of Rs. 9.88 lakh crore.

The Government of India (GoI) has consistently supported the MSME sector in terms of flow of credit at affordable rates through various initiatives, it said.

"The MSME advances registered a CAGR of 15 per cent during the last three years. Total MSME advances as on March 31, 2024 stood at Rs 28.04 lakh crore, posted an annual growth of 17.2 per cent," it said.

The gross advances of scheduled commercial banks, which grew from Rs 8.5 lakh crore to 61 lakh crore during 2004-2014, has significantly increased to Rs 175 lakh crore in March 2024, according to the finance ministry.

Besides, the government has also announced a slew of measures towards welfare of employees working in PSBs.