India’s banks improved, with NPAs falling, boosting strength, capital, and cheaper loans for all sectors
Chennai
Finance Minister Nirmala Sitharaman on Tuesday said the upcoming Goods and Services Tax (GST) reforms will make India’s economy more open and transparent, while also reducing compliance pressure for small businesses. She was speaking at the 120th Foundation Day celebrations of City Union Bank, where President Droupadi Murmu was the chief guest.
Sitharaman said Prime Minister Narendra Modi had recently created a Task Force to simplify rules, lower costs, and help startups, small businesses, and entrepreneurs. The GST Council, meeting on September 3–4, will discuss the next generation reforms. According to her, these changes will help businesses thrive, while citizens can expect a Diwali tax bonanza, as promised by Modi in his Independence Day speech.
The minister said India’s banking sector has shown strong progress, with gross non-performing assets of commercial banks dropping to 2.3 percent by March 2025, and net NPAs down to 0.5 percent. This, she said, makes banks stronger, better capitalised, and capable of offering cheaper loans to households, MSMEs, and infrastructure projects.
She also highlighted that India’s economy grew 7.8 percent in April–June 2025, beating estimates. Inflation has fallen for nine straight months, touching an eight-year low of 1.55 percent in July. Additionally, nearly 22 lakh new members joined the Employee Provident Fund Organisation in June, marking the second month of record additions.
Sitharaman praised the success of the Jan-Dhan Yojana, which has opened 56 crore accounts with deposits of ₹2.68 lakh crore, most held by women. She said banks must continue supporting growth based on trust, technology, and transparency to achieve the vision of Viksit Bharat 2047.
