PSBs wrote off Rs 28,000 crore in FY18
It said that the amounts written off (including through compromise) by Public Sector Banks (PSBs) were Rs 81,683 crore in the 2016-17 fiscal.
New Delhi: The finance ministry on Tuesday said that Rs 28,781 crore were written off by state-owned banks in the current fiscal year till September 30, 2017.
“As per Reserve Bank of India (RBI) guidelines and policy approved by Bank Boards, non-performing loans, including, inter-alia, those in respect of which full provisioning has been made on completion of four years are removed from the balance-sheet of the bank concerned by way of write-off," said finance ministry in a written reply in the Parliament.
It said that the amounts written off (including through compromise) by Public Sector Banks (PSBs) were Rs 81,683 crore in the 2016-17 fiscal. This includes Rs 20,339 crore written off by the State Bank of India .
It said that the amounts written off (including through compromise) by PSBs were Rs 27,231 crore during FY13. “The amount written off (including through compromise) by nationalised banks was Rs 28,781 crore during FY 2017-18, up to 30 September 2017,” said the ministry.
Finance ministry said that writing off of loans is done for tax benefit and capital optimisation. “Borrowers of such written off loans continue to be liable for repayment. Recovery of dues takes place on ongoing basis under legal mechanisms, which include, inter-alia, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, Debts Recovery Tribunals and Lok Adalats,” it said. The ministry said that the write-off does not benefit borrowers.