Indian banks have written off loans totaling Rs 1.7 trillion in the financial year 2023-24 (FY24), a decrease from Rs 2.08 trillion in FY23, according to data shared by Pankaj Chaudhary, Union Minister of State for Finance, in response to a question in the Lok Sabha.
The loan write-offs in FY24 are the lowest in the last five years. In FY20, Indian banks wrote off Rs 2.34 trillion, followed by Rs 2.03 trillion in FY21, and Rs 1.75 trillion in FY22.
Punjab National Bank (PNB) reported the highest loan write-off in FY24, at Rs 18,317 crore, followed by Union Bank of India with Rs 18,264 crore, and State Bank of India at Rs 16,161 crore. Among private sector banks, HDFC Bank wrote off Rs 11,030 crore, ICICI Bank had write-offs of Rs 6,198 crore, and Axis Bank wrote off Rs 8,346 crore.
| Bank Name | Loan Write-Off (FY24) |
|---|---|
| Punjab National Bank (PNB) | Rs 18,317 crore |
| Union Bank of India | Rs 18,264 crore |
| State Bank of India (SBI) | Rs 16,161 crore |
| HDFC Bank | Rs 11,030 crore |
| ICICI Bank | Rs 6,198 crore |
| Axis Bank | Rs 8,346 crore |
Banks write off fully provisioned non-performing assets (NPAs) according to the Reserve Bank of India’s (RBI) regulations and their board-approved policies.
In his response, Minister Chaudhary clarified, “Such write-offs do not result in the waiver of liabilities of borrowers. The borrowers remain liable for repayment, and banks continue to pursue recovery actions in these accounts.”
