The worst is over for India's public sector banks, which have struggled in recent years with large levels of bad debt that have hamstrung their growth, according Jayant Sinha, the country's minister of state for civil aviation.
India has massively reformed its public sector banks over the last five years, he told CNBC's "Street Signs" on Friday.
"We were very, very seized with that matter and we started to put in place a very important reform package, which, in fact, has moved forward quite aggressively over the last few years," Sinha said.
Public-sector financial institutions control about 70 percent of all banking assets in India and they have had the highest exposure to soured loans.
Banks are a key source of funding for Indian companies and as their levels of bad debt grew, their lending capabilities were reduced.