Recovery in written-off loans drops in FY23

New Delhi: Banks have written off bad loans worth Rs14.56 lakh crore in the last nine financial years starting 2014-15, Parliament was informed on Monday. Out of the total Rs14,56,226 crore, written off loans of large industries and services stood at Rs7,40,968 crore. Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs2,04,668 crore in written-off loans, including corporate loans, since April, 2014 and up to March 2023, Minister of State (MoS) for Finance Bhagwat Karad said in a written reply to Lok Sabha.

Loans written-off during the financial year, net of recovery in written-off loans during the financial year (net write-off) in public-sector banks (PSBs) was Rs1.18 lakh crore in the financial year (FY) 2017-18, which has declined to 0.91 lakh crore in FY 2021-22 and to Rs0.84 lakh crore (RBI provisional data) in FY2022-23, he said in another reply.

Net write-off loans by privatesector banks stood at Rs73,803 crore (RBI provisional data) in FY 2022-23, he said.