Public sector banks have opened 6,255 branches and closed 4,093 branches over the past five financial years, the government informed Parliament, citing data from the Reserve Bank of India (RBI). Branch closures were highest in FY22, when 2,564 branches were shut. The number declined to 700 in FY23, followed by 556 in FY24, 146 in FY25 and 127 in FY26. 
Branch expansion followed a different pattern. Public sector banks opened 476 branches in FY22, the lowest during the five-year period. This increased to 932 in FY23 and 1,057 in FY24. The number rose further to 1,823 in FY25, while 1,967 branches were opened in FY26, marking the highest annual addition during the period. 
The figures indicate that while public sector banks continued to rationalise their branch networks in some locations, the pace of new branch openings increased in the later years. The shift also comes as banks have expanded digital banking services while continuing to maintain physical branches for customers and areas where branch-based banking remains important. 
The government also provided information on wilful defaults by borrowers of public sector banks. Finance Minister of State Pankaj Chaudhary said the RBI does not maintain the total number of wilful defaulters and the outstanding amount against each borrower on a company-wise basis. 
However, information received from public sector banks showed that 15,930 wilful defaulters with outstanding dues of INR 25 lakh and above owed a combined INR 2,85,015 crore as of June 30, 2026. 
The figure covers borrowers classified as wilful defaulters and reflects the outstanding amount reported by public sector banks. Wilful default generally refers to cases where a borrower has the ability to repay but does not do so, or where borrowed funds are diverted or siphoned off, subject to the applicable regulatory classification. 
The government also disclosed the value of unclaimed deposits transferred by banks to the Depositor Education and Awareness (DEA) Fund maintained under the RBI framework. The amount stood at INR 90,545 crore as of June 30, 2025, and increased to INR 98,073 crore by January 31, 2026. 
The DEA Fund was established to support awareness among depositors about unclaimed deposits and help facilitate claims by eligible depositors. Banks are required to transfer qualifying unclaimed deposits to the fund after the prescribed period, while customers or their legal heirs can claim eligible amounts through the respective banks. 
The Finance Ministry also highlighted several positive sovereign credit rating actions received by India from international rating agencies during the last three financial years. 
Morningstar DBRS upgraded India's sovereign rating from BBB (low) to BBB in May 2025. S&P Global Ratings subsequently raised India's rating from BBB- to BBB in August 2025. Japan's Rating and Investment Information Inc. (R&I) also upgraded India's rating from BBB to BBB+ in September 2025. 
The government said S&P Global Ratings and Morningstar DBRS had earlier revised India's sovereign outlook to Positive in May 2024. Other agencies, including Moody's Ratings, Fitch Ratings, Japan Credit Rating Agency and CareEdge Global, reaffirmed India's sovereign ratings with stable outlooks during the period. These rating actions are based on assessments of factors including economic growth, fiscal conditions, government finances, external stability and the country's overall economic outlook. 
The Ministry of Finance has also taken measures aimed at limiting the impact of the West Asia crisis on the Indian economy and sectors affected by disruptions linked to the conflict. 
One measure involved exempting 40 critical petrochemical products from customs duty to support domestic availability. The government has also provided a one-time relief measure for eligible Special Economic Zone (SEZ) units, allowing them to sell manufactured goods in the Domestic Tariff Area at concessional customs duty rates. 
Relief linked to force majeure provisions has also been enabled in government procurement contracts wherever applicable, according to the minister. The government has further approved Emergency Credit Line Guarantee Scheme 5.0, which is intended to facilitate an additional INR 2.55 lakh crore in credit for businesses affected by disruptions arising from the conflict. 
Another measure is the Bharat Maritime Insurance Pool, launched with a sovereign guarantee to help maintain uninterrupted maritime insurance coverage. 
Source PTI