Details Government Banks wrote off ₹12 lakh crore in bad loans over 10 years

Details Government Banks wrote off ₹12 lakh crore in bad loans over 10 years

Public sector banks wrote off approximately ₹12.08 lakh crore in bad loans over a decade, from the financial year 2015-16 to 2024-25. 

In the last 5 years (FY 2020-21 to FY 2024-25), write-offs amounted to ₹2.9 lakh crore. 

This information was shared with Parliament during the Monsoon Session of 2025, highlighting the scale of bad loan management in the banking sector.

Major Banks Involved -

State Bank of India (SBI) topped the list with write-offs of ₹1,14,599 crore over the last 5 years, including ₹20,309 crore in FY 2024-25. 

Other significant contributors include:

Union Bank of India: ₹85,540 crore (including ₹11,634 crore in FY 2024-25)

Punjab National Bank: ₹81,243 crore (including ₹12,159 crore in FY 2024-25)

Bank of Baroda: ₹70,061 crore (including ₹8,796 crore in FY 2024-25)

Canara Bank: ₹56,491 crore (including ₹14,350 crore in FY 2024-25)

Write-offs are an accounting exercise where non-performing assets (NPAs), loans with no interest or principal repayment for over 90 days, are removed from the books after full provisioning, typically after four years of default. 

However, borrowers remain liable, and banks pursue recovery through legal means like civil courts, Debt Recovery Tribunals (DRTs), the Insolvency and Bankruptcy Code (IBC), and the SARFAESI Act. 

There are 1,629 wilful defaulters as of March 31, 2025, owing ₹162,961 crore, with measures like a 5-year credit bar and the Fugitive Economic Offenders Act (FEOA) in place.

As per Reports only 13% amount got recovered in past 

Do you think this is a  scam or corruption , NPA is a legal corruption ?

Just do not pay a home loan amount for 2 months to bank and see what happens with you?

How is it possible NPA happens