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<h1>Decline in gross non-performing assets restores public sector bank resilience and strengthens capital adequacy and financial inclusion.</h1> The release reports a recovery of Public Sector Banks driven by reduced GNPA levels following the Asset Quality Review, strengthened capital buffers as reflected in higher CRAR, and institutional reforms under the EASE framework; it links these improvements to expanded branch networks, broader financial inclusion initiatives, and increased targeted credit to farmers and MSMEs, enabling reduced dependence on government recapitalisation.