Finance Minister Nirmala Sitharaman.
Banks have written off bad loans (NPAs) worth Rs 10,09,511 crore during the last five financial years.
Finance Minister Nirmala Sitharaman gave this information to the Parliament.
The Finance Minister said in a written reply to the Rajya Sabha that the non-performing assets (NPAs) or bad loans have been removed from the books of the concerned bank by writing them off.
In this, those stranded loans are also included, in lieu of which full provision has been made after completion of four years.
Sitharaman said, “Banks are working towards streamlining their respective balance sheets, availing tax benefits and achieving optimal levels of capital as per RBI guidelines and policy approved by their respective Boards of Directors.” Regularly write off NPAs by taking them.
As per information received from RBI, Scheduled Commercial Banks (SCBs) have written off an amount of Rs 10,09,511 crore during the last five financial years.
He clarified that the borrower does not benefit by writing off the loan.
They will continue to be liable for repayment and the process of recovery of dues continues.
Banks continue to take action to recover the amount written off through various remedies available.
These measures include filing cases in courts or debt recovery tribunals, filing cases under the Insolvency and Bankruptcy Code, 2016, and sale of non-performing assets, etc.
He said that scheduled commercial banks have recovered a total of Rs 6,59,596 crore during the last five financial years.
This includes recovery of Rs 1,32,036 crore from the written off loan.
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