India’s major public sector banks (PSBs) have doubled down on the Insolvency and Bankruptcy Code (IBC) and the National Company Law Tribunal (NCLT) framework to resolve years of accumulated bad debt, with FY 2025-26 annual reports revealing a sweeping and coordinated recovery effort that has materially transformed the asset quality of the country’s banking system. Across PSU banks reviewed — State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India, Indian Bank, and UCO Bank — gross non-performing asset (NPA) ratios have fallen to multi-year lows, bolstered by structured NCLT referrals, Corporate Insolvency Resolution Processes (CIRP), and parallel mechanisms including SARFAESI enforcement,…
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