MUMBAI: Loans written off by industrial banks between FY15 and FY24 totaled Rs 12.3 lakh crore. Of this, 53% or Rs 6.5 lakh crore of the write-offs had been by public sector banks in the last 5 years (FY20-24), in line with knowledge offered by authorities in response to Parliament queries.
The mortgage write-offs by the banking sector peaked in FY19 at Rs 2.4 lakh crore, which adopted an asset high quality evaluation that started in 2015. It fell to the bottom degree of Rs 1.7 lakh crore in FY24 which was only one% of complete financial institution credit score of round Rs 165 lakh crore excellent at the moment. Public sector banks at the moment have a share of 51% of the banking sector’s incremental credit score, decrease than 54% in FY23.
Pankaj Chaudhary, minister of state for finance, mentioned that in line with RBI knowledge, gross NPAs of public sector banks and personal sector banks as of Sept 30, 2024 had been Rs 3,16,331 crore and Rs 1,34,339 crore, respectively. Further, gross NPAs as a share of excellent loans was 3.01% in public sector banks and 1.86% in personal sector banks.
SBI, which accounts for round a fifth of banking exercise, wrote off Rs 2 lakh crore through the interval. Punjab National Bank wrote off Rs 94,702 crore price of loans amongst nationalized banks. During the present fiscal as much as end-Sept PSU banks have written off Rs 42,000 crore of loans as towards Rs 6.5 lakh crore for the previous 5 years.
Responding to the question on PSB write-offs, Chaudhary mentioned: “Banks write-off NPAs in respect of which full provisioning has been made on completion of 4 years, in line with RBI tips and coverage permitted by banks’ boards. Such write-off doesn’t consequence in waiver of liabilities of debtors and subsequently, it doesn’t profit the borrower and banks proceed to pursue restoration actions initiated in these accounts.
He added that the restoration strategies embody submitting of a swimsuit in civil courts or in debt restoration tribunals, motion below the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, submitting of instances in the National Company Law Tribunal below the Insolvency and Bankruptcy Code, 2016, by negotiated settlement/ compromise, and thru sale of NPAs.
Govt, in a separate assertion, mentioned that public sector banks in India recorded their highest-ever combination internet revenue of Rs 1.41 lakh crore in FY24. This was supported by an enchancment in asset high quality, with the gross NPAs ratio declining to three.12% in Sept 2024. In the primary half of 2024-25, PSBs reported a internet revenue of Rs 85,520 crore.
