Banks Failed to Recover 81.30% of Loans Written Off in Last Five Years: Report
The Wire Staff
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New Delhi: In the last five years, banks have failed to recover 81.30 per cent of the loans written off, despite using several recovery measures.
An RTI application has revealed that recoveries from write-offs amount to Rs. 1,85,241 crore, which is only 18 per cent of the loans written off, reported The Indian Express.
In the last five years, banks have written off loans worth Rs. 9.90 lakh crore, the data furnished under the RTI application by the Reserve Bank of India (RBI) indicates.
The write off would otherwise have been enough to wipe out 59 per cent of India’s estimated gross fiscal deficit which amounted to Rs. 16.54 lakh crore for 2023-24. The write off has resulted into the gross non-performing assets ration (GNPA) of scheduled commercial banks falling to a historic low 12-year-low of 2.8 per cent of the advances in March 2024, reported The Indian Express.
In the write off exercise, public sector banks had the maximum share of 63 per cent.
Despite massive amount of loans being written off, the RBI has so far not disclosed the names of the top borrowers whose loans were written off by the banks.
A loan attains NPA status when payment of the interest of principal amount remains overdue for 90 days.
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