Banks Write Off Loans Worth Rs 11.17 Lakh Crores In Past 6 Years
NDTV
The Enforcement Directorate (ED) has informed that 515 fraud cases, including cases related to wilful defaulters, have been recorded since May 1, 2017.
Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday.
The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off, Minister of State for Finance Bhagwat Karad said in a written reply.
Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, he said, adding, the write-off is carried out by the banks in accordance with RBI guidelines and policy approved by their boards.
"As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," he said.