The Department of Financial Services’ strategic interventions have notably enhanced the financial health and strength of the banking sector. As per an official statement, the gross NPA ratio of scheduled commercial banks (SCBs) has decreased to 2.22%, while that of public sector banks (PSBs) stands at 2.58%. Additionally, the Provision coverage ratio (PCR) of SCBs has surged from 49.31% in March 2015 to a robust 93.14% by March 2025.
During the fiscal year 2024-25, SCBs achieved a record aggregate net profit of Rs 4.01 lakh crore, marking the highest ever. Similarly, PSBs also saw their aggregate net profit reach a historic high of Rs 1.78 lakh crore during the same period. Moreover, PSBs reported a net profit of Rs 0.94 lakh crore in the first half of fiscal year 2025-26.
Furthermore, global deposits and global advances of PSBs have witnessed significant growth. The figures escalated from 71.95 lakh crore and 56.16 lakh crore in March 2015 to 146.27 lakh crore and 114.85 lakh crore, respectively, by September 2025.
In the digital payments domain, the Department of Financial Services has reinforced its leadership position by spearheading consistent growth through the DIGIDHAN Mission. Notably, the total digital payment transactions volume surged to 22,831 crore in FY 2024-25, registering a CAGR of 41% from 2,071 crore in FY 2017-18. The transaction value also saw a substantial rise from Rs 1,962 lakh crore to Rs 3,509 lakh crore, according to a Ministry of Finance statement.
The statement highlighted that financial inclusion remains a key focus area, with initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, MUDRA, Stand Up India, and Atal Pension Yojana, NPS Vatsalya making significant strides. These schemes and policy initiatives have expanded their outreach, ensuring that millions of citizens, particularly from marginalized communities, access essential banking, insurance, and pension services.
