Bad loan write-offs by Public Sector Banks (PSBs) more than doubled in the last four years, data from Parliament papers show.
PSU banks wrote off Rs 49,018 crore in the financial year 2014-15, which increased by whopping 161% in the financial year 2017-18 to Rs 1,28,229 crore, data provided by Minister of State for Finance, Shiv Pratap Shukla, in the Rajya Sabha showed.
India’s largest lender the State Bank of India (SBI) wrote off Rs 39,151 crore in FY17-18, followed by IDBI Bank (Rs 12,515 crore) and Bank of India (Rs 8,976 crore). The NPA write-offs for agriculture and allied services were Rs 7,091 core in FY16-17 and Rs 10,345 crore in FY17-18, data showed.
“The amounts written off during recent financial years are substantially on account of such stressed loan accounts of earlier years” Shiv Pratap Shukla, adding that high incidence of non-performing assets (NPAs) was revealed when Asset Quality Review (AQR) carried-out in 2015. He also stated that loan write-offs do not benefit the borrower and the recovery of dues continue even after the process.
Full list of NPAs written off by PSU Banks