In the first half of the current financial year public sector banks have written off loans worth Rs 42,000 crore, which were not loan waivers, Minister of State for Finance Pankaj Chaudhary said in Rajya Sabha while presenting details of the so called write-off. These loan write-offs are not loan waivers though many politicians and ill-informed media men misinterpret them as loan waivers.
In the first half of the current financial year public sector banks have written off loans worth Rs 42,000 crore, which were not loan waivers, Minister of State for Finance Pankaj Chaudhary said in Rajya Sabha while presenting details of the so called write-off. These loan write-offs are not loan waivers though many politicians and ill-informed media men misinterpret them as loan waivers.
On 10th December 2024, in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said: “Such write-off does not result in waiver of liabilities of borrowers and therefore, it does not benefit the borrower. The borrowers continue to be liable for repayment and banks continue to pursue recovery actions initiated in these accounts through various recovery mechanisms available to them.” Going by the parliament information State Bank of India (SBI) wrote off Rs 8,312 crore, Punjab National Bank Rs 8,061 crore, Union Bank of India Rs 6,344 crore, Bank of Baroda Rs 5,925 crore, etc. during the first half of the current financial year.
At the same time, the banks recovered Rs 37,253 crore from the earlier written-off accounts. In the last financial year, public sector banks wrote off Rs 1.14 trillion worth of loans against the previous year’s Rs 1.18 trillion.(trillion= one lakh crore)
