Banks write off Rs 9.75 lakh crore of loans in 11 years
Change
Banks wrote off loans totaling Rs 9.75 lakh crore over the last 11 financial years, with write-offs peaking at Rs 1.59 lakh crore in FY20 and falling to Rs 47,568 crore in FY25.
Why it matters
The write-offs are accounting measures carried out after full provisioning and, in many cases, on completion of four years, and they do not extinguish borrowers' legal obligations. Banks remain required to pursue recovery actions under Reserve Bank of India guidelines and bank board–approved policies, so written-off exposures can still face enforcement or collection efforts.
Implications
- • Banks' recovery departments must continue to pursue legal and other recovery mechanisms against written-off accounts under the mechanisms available to them.
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Source
Topics
Regulatory Actions Compliance Banking Regulation Financial Services