MONEY
PSBs write off Rs 6.15 lakh crore of loans in five years, reveals Pankaj Chaudhary
- IBJ Bureau
- Dec 09, 2025
Public sector banks (PSBs) have written off loans worth Rs 6.15 lakh crore in the last five-and-a-half years, Minister of State for Finance Pankaj Chaudhary has informed the Parliament.
In a written reply in the Lok Sabha the minister has said: “As per Reserve Bank of India (RBI) data, PSBs have written off an aggregate loan amount of Rs 6,15,647 crore during the last five financial years and the current financial year till September 30, 2025 (provisional data).”
There has been no capital infusion in PSBs by the government since FY23. PSBs have significantly improved their financial performance, turning profitable and strengthening their capital position, Mr Chaudhary has added.
PSBs now rely on market sources and internal accruals to meet their capital requirements, and they have raised Rs 1.79 lakh crore of capital from market through equity and bonds since April 1, 2022, till September 30, 2025.
He has further said that banks write off NPAs, including those in respect of which full provisioning has been made on completion of four years, according to the RBI guidelines and policy approved by banks’ boards.
Such write-offs do not result in waiver of liabilities of borrowers to repay, he has said.
Recovery in written-off loans is an on-going process, and banks continue pursuing their recovery actions initiated against borrowers under the various recovery mechanism available to them, such as filing of a suit in civil courts or in Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, and so on.
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