Banks have written off a total of Rs 10.57 lakh crore in the last five fiscal years, with Rs 5.52 lakh allocated to loans linked to large industries, according to information shared by the government in Parliament.
According to Reserve Bank of India (RBI) data, scheduled commercial banks (SCBs) have collectively written off Rs 10.57 lakh crore in loans over the past five financial years, Minister of State for Finance Bhagwat Karad said in response to a question in the Rajya Sabha. Sabha.
During this same period, SCBs successfully recovered Rs 7.15 lakh crore of non-performing assets (NPAs). The government highlighted the implementation of comprehensive measures to recover NPAs, resulting in an aggregate recovery of Rs 7,15,507 crore, according to RBI provisional data for the financial year 2022-23.
The part of large industries
The scheduled commercial banks have written off Rs 5.52 lakh crore on loans related to large industries and services during the last five fiscal years (FYs) running from FY 2018-19 to FY 2022-23. This figure includes ₹ 93,874 crore written off by all banks due to fraud during this period.
Banks routinely assess the impact of write-offs as part of their efforts to clean up their balance sheets, take advantage of tax benefits and optimize capital, adhering to the guidelines and policies of their respective boards.
Loan cancellations do not translate into a waiver of liabilities for borrowers, as those with delinquent loans remain responsible for repayment. Banks continue their pursuit of recovery actions initiated in deleted accounts through various available mechanisms.