The state-run as well as private lenders have written off bad loans worth Rs 80,893 crore during April-September 2019 period, Parliament was informed on Tuesday.
Replying to a question in the upper house of Parliament, MoS Finance Anurag Thakur in a written statement said, “As per RBI data on global operations, public sector and private sector banks wrote off Rs 80,893 crore (provisional data), during the current financial year 2019-20 (till September 30, 2019),”
Further, gross NPAs of public and private sector Banks, as per RBI data on global operations, rose to Rs 10,21,464 crore as on March 2018 from Rs 3,12,706 crore as on March 2015, the minister said.
Moreover, as a result of the government’s 4R’s strategy of recognition, resolution, recapitalisation and reforms, Gross NPAs have since declined by Rs 80,790 crore to Rs 9,40,674 crore as on September 2019 (provisional data), he added.
State Bank of India wrote off the highest amount of NPA during the current financial year (till September) at Rs 27,535.31 crore followed by Bank of Baroda writing off Rs 5,439.76 crore and Axis Bank Rs 5,426.14 crore.
When asked about the beneficiaries of the loans written off, the minister said, “As borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, write-off does not benefit the borrower.”
Replying to another question, the minister informed that as per RBI data on domestic operations, public sector banks have written off loans worth Rs 1.86 lakh crore in FY19.
Of these, write-off in loans pertaining to “agriculture and allied activities” was Rs 12,556 crore, the statement added.