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.>