Archive · 23 Jul 2025
Indian Banks Write Off Loans Worth Rs 12.08 Lakh Crore
Imagine banks give out a lot of money as loans.
Sometimes, people can't pay them back.
When this happens, the bank might 'write off' the loan.
It's like saying they won't count that money as something they expect back anymore.
This has happened a lot with public banks in India, where they've written off a huge amount of money.
But, this doesn't mean the people who borrowed the money don't have to pay it back!
The banks still try to get the money back.
They follow rules from the government and their own bank rules when deciding to write off a loan.
Public sector banks (PSBs) have written off loans worth Rs 12.08 lakh crore since FY16.
The write-off process adheres to RBI guidelines and bank board policies.
Write-offs occur after full provisioning is made, typically after four years.
Write-offs do not absolve borrowers of their repayment obligations.
Banks continue recovery actions on written-off accounts.
- Who
- Public sector banks
- What
- Public sector banks wrote off loans.
- When
- Since FY16
- Where
- India
- Why
- As per RBI guidelines and bank policies
Banks
Borrowers
Compliance
Banks
Adhere to RBI guidelines and bank policies.
Borrowers
N/A
Recovery Actions
Banks
Continue recovery actions on the written-off accounts.
Borrowers
N/A
- Total Loans Written Off
- Rs 12.08 lakh crore
- Time Period
- Since FY16
- Type of Banks
- Public sector banks
- Governing Bodies
- RBI guidelines and bank policies
- Borrower Liability
- Continues