Archive · 8 Dec 2025
India's PSBs write off ₹6.15 trillion in loans
Indian state-run banks have canceled loans worth ₹6.15 trillion over the past five and a half years.
This doesn't mean the borrowers don't have to pay back; it's a way for banks to clean up their records.
The banks are now making money and don't need government help.
They've also given out a lot of money for exports and are working to recover money from fraud cases.
The government says this process helps banks work better and makes investors more confident.
India's public sector banks (PSBs) have written off loans worth ₹6.15 trillion between FY2019-20 and September 30, 2025.
Write-offs are carried out as per RBI norms and do not amount to waivers; borrowers remain liable to repay.
PSBs have raised ₹1.79 trillion from markets through equity and bond issuances between April 2022 and September 2025.
PSBs, SIDBI, and Exim Bank disbursed ₹21.71 trillion in export credit over the last five years.
583,291 fraud cases amounting to ₹3,588.22 crore were reported in the past four-and-a-half years, with ₹238.83 crore recovered.
- Who
- Public Sector Banks (PSBs) in India
- What
- Loan write-offs worth ₹6.15 trillion
- When
- Between FY2019-20 and September 30, 2025
- Where
- India
- Why
- To clean up balance sheets, optimise capital usage, and improve investor confidence
- Total Loan Write-offs
- ₹6,15,647 crore
- Write-off Period
- FY2019-20 to September 30, 2025
- Capital Raised by PSBs
- ₹1.79 trillion
- Export Credit Disbursed
- ₹21.71 trillion
- Fraud Cases Reported
- 583,291
- Fraud Amount
- ₹3,588.22 crore
- Fraud Recovered
- ₹238.83 crore
