Public sector banks have written off loans worth Rs 6.15 lakh crore in the last five and a half years, Parliament was informed on Monday.
In a written reply in Lok Sabha, minister of state for finance Pankaj Chaudhary said, “According to Reserve Bank of India (RBI) data, PSBs have written-off an aggregate loan amount of Rs 6,15,647 crore, during the last five financial years and the current financial year till September 30, 2025 (provisional data).”
For the first six months of the current financial year, the loan write-off of PSBs stood at Rs 42,035 crore.
During this April-September period, the PSBs recovered Rs 37,253 crore of bad loans.
For the previous full=fiscal, state-run banks had written off loans worth Rs 1.14 lakh crore. This was lower than Rs 1.18 lakh crore in the year-ago period.
The process followed RBI guidelines of provisioning of non-performing assets (NPAs) and those of the policy of the board of the banks, even as such write-offs did not result in waiver of liabilities of borrowers to repay.
Recovery in written-off loans is an ongoing process and banks continue pursuing their recovery actions initiated against borrowers under the various recovery mechanism available to them, such as filing of a suit in civil courts or in debt recovery tribunals (DRT), action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002, filing of cases in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 etc.
As provisioning for bad loans has already been done and the write-off process does not entail any actual cash outflow, the bank’s liquidity position remains intact, Chaudhary informed the Lok Sabha.
Moreover, banks evaluate/consider the impact of write-offs as part of their regular exercise to clean up their balance-sheet, avail tax benefit, optimise capital base, enhance lending capacity and boost investor sentiments, the minister informed.
Replying to another question, Chaudhary said, banks and financial Institutions have traditionally been the primary source of export finance in India.
The total export credit disbursed by Public Sector Banks, SIDBI and Exim Bank in the last five years (FY 20-21 to FY 24-25) stood at Rs 21.71 lakh crore, he said.
In another reply, Chaudhary said, 5,83,291 fraud cases were registered in the last four and a half years till September 2025 amounting to Rs 3,588.22 crore.
Of this, he said, Rs 238.83 crore have been recovered.
With increasing digital payment transactions in the country, incidence of cyber frauds including digital payment frauds have also gone up in the last few years, he said
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