The finance ministry of India has confirmed that banks have written off loans worth Rs 8.5 lakh crore.
Data by the Finance Ministry has confirmed that the State Bank of India (SBI), the biggest lender in India, wrote off Rs 1.65 lakh crore during this time, followed by the Punjab National Bank (PNB), which wrote off Rs 59,807 crore.
Indian Banks Waived Off Loans Worth Rs. 8.5 Lakh Crores?
According to data, SBI wrote off loans totaling 19,666 crores in FY22, 34,402 crores in FY21, 52,362 crores in FY20, and 58,905 crores in FY19. In total, IDBI Bank wrote off Rs 33,135 crore over the previous four years, with Rs 2,889 crore written off in FY 22. ICICI Bank and HDFC Bank were two private sector banks that wrote off loans totaling Rs. 42,164 crore and Rs. 31,516 crore, respectively.
Finance Minister Nirmala Sitharaman responded to a question in the Lok Sabha by stating that non-performing assets (NPAs), including those for which full provisioning has been made after four years, are written off from the balance sheet of the bank in question in accordance with RBI guidelines and policy approved by banks’ boards.
In accordance with RBI guidelines and policy that have been approved by their Boards, banks evaluate the impact of write-offs as part of their routine process to balance out their books, take advantage of tax breaks, and maximise capital.
She stated, “The borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues. Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available.”
NPAs Written Off As Per RBI Guidelines and Policies
FM According to Nirmala Sitharaman, NPAs, including those for which full provisioning has been made after four years, are written off from the balance sheet of the relevant bank in accordance with RBI guidelines and policy that has been approved by banks’ boards.
Additionally, banks have written off bad loans totaling Rs 10,09,511 crore over the last five fiscal years, according to Finance Minister Nirmala Sitharaman on Tuesday.
In a response to a question from the Rajya Sabha, Sitharaman stated that the non-performing assets (NPAs), including those for which full provisioning had been made at the end of four years, had been written off from the balance sheet of the relevant bank.
