‘Seemed Like An Impossible Goal’: Sanjeev Sanyal Reacts As Bank NPAs Fall To Record Low

India's banking sector has achieved a significant milestone, as non-performing assets (NPAs) have fallen to a record low of 0.5 percent. This achievement was prominently highlighted by Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister, in the recently released Economic Survey 2025-26. The reduction in NPAs marks a pivotal moment for the sector, which has faced challenges with bad loans in recent years. Sanjeev Sanyal expressed his satisfaction with the progress, noting that such a reduction once seemed like an impossible goal. The decline in NPAs is attributed to several factors, including improved loan recovery mechanisms, stricter regulatory oversight, and a robust economic environment fostering better repayment capacities. This achievement underscores the effectiveness of the government's initiatives aimed at strengthening the banking system. The record low NPAs are expected to boost investor confidence and stimulate further growth in the banking sector. Analysts believe this positive trend could lead to increased lending, supporting economic expansion and development across various industries. As the sector continues to stabilize, stakeholders remain optimistic about the future, viewing this achievement as a foundation for sustained financial health and resilience.

— Authored by Next24 Live