Indian banks have written off non-performing assets (NPAs) worth approximately ₹16.35 lakh crore over the past 10 financial years, Finance Minister Nirmala Sitharaman informed Parliament on Monday. The highest amount of write-offs occurred in the financial year 2018-19, totaling ₹2,36,265 crore, while the lowest was in 2014-15, when banks wrote off ₹58,786 crore.
Recent NPA Write-Offs
In the financial year 2023-24, banks wrote off ₹1,70,270 crore in bad loans, which was lower than the ₹2,16,324 crore written off in 2022-23. These write-offs are carried out as per the Reserve Bank of India (RBI) guidelines and bank board-approved policies. Sitharaman clarified that writing off NPAs does not mean borrowers’ liabilities are waived. Instead, banks continue their efforts to recover dues using various legal mechanisms.
Recovery Measures Taken by Banks
Even after writing off bad loans, banks continue to recover dues by:
- Filing cases in civil courts and Debts Recovery Tribunals (DRTs).
- Taking action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
- Approaching the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
Major NPA Borrowers
As per RBI data, as of December 31, 2024, there were 29 borrower companies, each with outstanding loans of ₹1,000 crore or more, classified as NPAs. The total outstanding amount in these accounts stood at ₹61,027 crore.
Efforts to Recover Overdue Loans
Banks actively pursue defaulting borrowers through:
- Phone calls, emails, and legal notices demanding overdue payments.
- Approaching NCLT for insolvency proceedings in case of corporate borrowers.
- Legal actions based on their board-approved recovery policies.
8th Central Pay Commission Announced
In response to another parliamentary query, Sitharaman confirmed that the 8th Central Pay Commission (CPC) will be constituted. However, the financial implications of the commission’s recommendations will be determined only after its proposals are submitted and accepted by the government.
