The Crossbill News Desk
Over the past five years, banks have managed to recover only 18% of the loans they have written off, despite implementing various recovery strategies.
According to data provided by the Reserve Bank of India (RBI) in response to an RTI application, banks have written off loans totalling Rs. 9.90 lakh crore, with recoveries amounting to Rs. 1,85,241 crore, The Indian Express reported.
On August 6, Minister of State for Finance Pankaj Chaudhary provided the same figure in a written reply to a question from Congress member Randeep Singh Surjewala in the Rajya Sabha. The minister stated that banks have written off a total of Rs 9.90 lakh crore in loans over the past five financial years.
According to The Indian Express, the loan write-offs could have otherwise covered 59% of India’s estimated gross fiscal deficit of Rs. 16.54 lakh crore for the 2023-24 fiscal year. Additionally, these write-offs contributed to a historic 12-year low in the gross non-performing assets (GNPA) ratio of scheduled commercial banks, which fell to 2.8% of advances in March 2024.
In the loan write-off process, public sector banks accounted for the largest share, with 63%. Despite the substantial amount of loans written off, the RBI has yet to disclose the names of the top borrowers whose loans were written off. A loan is classified as a non-performing asset (NPA) when the payment of interest or principal remains overdue for 90 days.
According to data provided by the Reserve Bank of India (RBI) in response to an RTI application, banks have written off loans totalling Rs. 9.90 lakh crore, with recoveries amounting to Rs. 1,85,241 crore, The Indian Express reported.
On August 6, Minister of State for Finance Pankaj Chaudhary provided the same figure in a written reply to a question from Congress member Randeep Singh Surjewala in the Rajya Sabha. The minister stated that banks have written off a total of Rs 9.90 lakh crore in loans over the past five financial years.
According to The Indian Express, the loan write-offs could have otherwise covered 59% of India’s estimated gross fiscal deficit of Rs. 16.54 lakh crore for the 2023-24 fiscal year. Additionally, these write-offs contributed to a historic 12-year low in the gross non-performing assets (GNPA) ratio of scheduled commercial banks, which fell to 2.8% of advances in March 2024.
In the loan write-off process, public sector banks accounted for the largest share, with 63%. Despite the substantial amount of loans written off, the RBI has yet to disclose the names of the top borrowers whose loans were written off. A loan is classified as a non-performing asset (NPA) when the payment of interest or principal remains overdue for 90 days.
Comments (0)
Leave a Comment