Public Sector Banks Write Off Rs 42,000 Crore Loans in Six Months

Public sector banks in India have written off loans totaling Rs 42,000 crore in the first half of the fiscal year, with recovery efforts still ongoing. The State Bank of India and other major banks continue to pursue borrowers for repayments despite loan write-offs, according to Minister Pankaj Chaudhary.

Informed Parliament on Monday, public sector banks have declared the write-off of loans worth Rs 42,000 crore in the initial six months of this fiscal year. Among them, the State Bank of India accounted for Rs 8,312 crore, Punjab National Bank Rs 8,061 crore, Union Bank of India Rs 6,344 crore, and Bank of Baroda Rs 5,925 crore.

Minister of State for Finance, Pankaj Chaudhary, clarified that these write-offs do not equate to liability waivers for borrowers. Borrowers remain responsible for repayment while banks continue with recovery actions using available mechanisms.

The total loan write-offs for public sector banks between April and September were logged at Rs 42,035 crore, with recoveries amounting to Rs 37,253 crore. Chaudhary also highlighted a decline in total write-offs for the 2023-24 fiscal compared to the previous year.

(With inputs from agencies.)