Public sector banks have written off loans worth Rs 6.15 lakh crore in the past five and a half years, Parliament was informed. According to the Reserve Bank of India (RBI) data, this initiative has been taken without government capital infusion since FY2022-23, helping banks turn profitable and strengthen their finances.

These banks are now focusing on market sources and internal accruals for capital generation, having raised Rs 1.79 lakh crore from equities and bonds in the last few years. Additionally, NPAs are being written off in adherence to RBI guidelines, but borrower liabilities to repay loans remain intact, emphasizing the ongoing recovery process.

Minister of State for Finance Pankaj Chaudhary highlighted that recovery mechanisms such as legal suits and SARFAESI Act enforcemen

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