Public Sector Banks Write Off Rs 42,000 Crore Loans in First Half of 2024

Public sector banks have written off loans amounting to Rs 42,000 crore during the first six months of the current fiscal year, Parliament was informed on Monday. Leading the list, the State Bank of India (SBI) wrote off Rs 8,312 crore, followed by Punjab National Bank with Rs 8,061 crore, Union Bank of India with Rs 6,344 crore, and Bank of Baroda with Rs 5,925 crore during the April-September period.

Loan Write Offs in 1st Half Half of 2024

Minister of State for Finance Pankaj Chaudhary clarified that loan write-offs do not imply a waiver of borrower liabilities. “Such write-offs do not benefit borrowers as they remain liable for repayment. Banks continue to pursue recovery actions in these accounts through available mechanisms,” Chaudhary said.

In the same period, public sector banks recovered Rs 37,253 crore against the total write-off of Rs 42,035 crore.

In a written reply to the Lok Sabha, Chaudhary further revealed that public sector banks wrote off Rs 1.14 lakh crore in the financial year 2023-24, a slight decrease from Rs 1.18 lakh crore in the previous fiscal year.

Banks Loan Write-Off in 2023-24

Indian banks have written off loans totaling Rs 1.7 trillion in the financial year 2023-24 (FY24). 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.