New Delhi, March 25 -- The twin balance sheet problem no longer persists in the Indian economy, Minister of State (MoS) for Finance Pankaj Chaudhary informed in the Lok Sabha.
Twin balance sheet problem refers to a situation when banks are over-stressed and corporates are overleveraged to the extent they find it difficult to repay loans.
In a written reply in the Lower house of the Parliament, the MoS Finance stated that the balance sheets of both banks and corporates are currently in a healthy position.
The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks has declined to a multi-decade low of 2.2 percent as of September 2025, indicating improved asset quality.
Banks are well-capitalised and profitable, whi...