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Key Points

The Indian government's recent report shows a substantial decline in bank NPAs, triggering a political debate. BJP leaders like Shantanu Thakur and Brij Lal celebrated this as a major economic milestone under Modi's leadership. Congress MPs Manish Tewari and Saptagiri Ulaka challenged the report's credibility, demanding more transparency. The NPA reduction could signal improved economic health and investor confidence.

Key Points: Modi's Bank NPA Drop Sparks Political Row BJP Congress Debate

  • NPAs dropped from 9.11% to 2.58% in four years
  • BJP claims significant economic achievement
  • Congress questions authenticity of report
  • NPA reduction signals potential economic growth
2 min read

Decline in NPAs of public sector banks: BJP terms it 'great news', Cong calls it eyewash

BJP celebrates decline in bank NPAs while Congress calls it eyewash, highlighting economic performance and political tensions

"This is big news. If the percentage of non-performing sectors is decreasing, it means the performing sectors are growing. - BJP MP Brij Lal"

New Delhi, July 23

The consistent decline in gross non-performing assets (NPAs) of the public sector banks (PSBs), in the past five financial years, has energised the common people as well as investors on account of a positive outlook for the economy, but politically, the sentiment remains divided.

A couple of leaders, pertaining to BJP, Congress and CPI, sharing their views on Finance Ministry's recent report, said, "NPAs of public sector banks witnessed a slump from 9.11 per cent in March 2021 to 2.58 per cent in March 2025."

BJP welcomed the reduction in NPAs in the past four years, calling it a progressive step. Congress called it an eyewash while CPI remained sceptical of such an outcome.

Shantanu Thakur, MoS for Shipping and Waterways, termed this a significant achievement and said that the nation is steadily moving ahead under the leadership of Prime Minister Narendra Modi.

BJP MP Brij Lal said that this is great news for the country as well as countrymen.

"This is big news. If the percentage of non-performing sectors is decreasing, it means the performing sectors are growing. That's exactly why we are the fourth-largest economy in the world, and soon we will be the third. So, this is great news for the country and for all Indians," he said.

On the other hand, Congress MP Manish Tewari accused the government of hiding the losses and said that the banks suffered huge setbacks, but it was not reflected in the report.

"The government should disclose how many such individuals, in the past 9-10 years since the implementation of IBC, took loans from banks and later got away by repaying only 4-5 per cent of the amount -- causing significant losses to the banks," he said.

Saptagiri Ulaka, another Congress MP, said, "These are just numbers. Unless we go into the details, we won't understand the full picture. I believe numbers alone don't provide the right answers."

CPI MP P Sandosh Kumar told IANS, "If it's true, then it's good, but I can't comment much on this, as I haven't seen the report yet. If it's genuine, it's a positive sign because NPA is a major issue."

"The question is, how did it reduce?" he asked.

- IANS

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Reader Comments

P
Priya S
Numbers can be manipulated so easily. What about the thousands of crores written off for big corporates? My father worked in PSU bank for 30 years - he says ground reality is very different from these fancy reports.
R
Rohit P
Whether it's BJP or Congress, politicians will always fight. But as a common man, I just want to know - does this mean better interest rates on my FD? That's what matters to middle class families like ours.
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Nisha Z
The reduction is impressive but I agree with CPI MP - how was this achieved? Through actual recoveries or just by writing off loans? Transparency is needed. Otherwise it's just jugglery of numbers.
D
David E
As an investor in Indian markets, this is positive news indeed! Strong banking sector = strong economy. But would like to see more details - which banks showed most improvement? Are private banks performing better?
S
Shreya B
Instead of political mudslinging, can we focus on how this benefits common people? Maybe now banks will stop harassing small borrowers while letting big defaulters go scot-free. That's the real test of this NPA reduction.

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