Page 57 - Banking Finance September 2025

FEATURES

In 9 years, PSBs write-off Rs. 12 lakh cr

P ublic Sector Banks (PSBs) wrote off over Rs. 12 lakh Tribunals, taking action under the Securitisation and
crore between FY16 and FY25, the Finance Ministry
Reconstruction of Financial Assets and Enforcement of
informed the Rajya Sabha. Data also showed that
National Company Law Tribunal (NCLT) under the Insolvency
while 10 out of 12 PSBs saw a decline in write-offs over the Security Interest (SARFAESI) Act, and filing cases in the
last five years, State Bank of India and Canara Bank and Bankruptcy Code (IBC), among others.
experienced a rise, especially during FY25.
In response to another question, Chaudhary stated that as
Meanwhile, in response to another question, the Ministry of March 31, 2025, 1,629 unique borrowers, with an
stated that public sector banks are currently recruiting over aggregate loan outstanding of over Rs. 1.62 lakh crore,
48,000 employees. were classified as wilful defaulters. Additionally, as per
information from the Directorate of Enforcement, nine
"As per the Reserve Bank of India (RBI) data, public sector accused who fled the country have been declared Fugitive
banks (PSBs) have written off an aggregate loan amount of Economic Offenders. In these cases, assets amounting to
Rs. 12,08,828 crore, from financial year 2015-16 to financial over Rs. 15,000 crore have been confiscated under the
year 2024-25 (provisional)," said Minister of State for Finance Prevention of Money Laundering Act (PMLA) to date, and
Pankaj Chaudhary in a written reply. The data presented as assets worth approximately Rs. 750 crore have been
part of the written reply indicated that total write-offs confiscated under the Fugitive Economic Offenders Act
exceeded Rs. 5.82 lakh crore between FY21 and FY25. (FEOA). Moreover, nine accused have been convicted in these
cases under the provisions of PMLA. Furthermore, assets
RBI guidelines amounting to over Rs. 25,000 crore have been restituted
to victim banks or legitimate claimants in bank fraud cases.
According to Chaudhary, banks write off non-performing
assets (NPAs), including those for which full provisioning has
been made after four years, as per RBI guidelines and Employment
policies approved by the banks' boards. "Such write-off does Replying to a question on employment in public sector
not result in a waiver of liabilities for borrowers and, banks, Chaudhary said in a written reply that as of March
therefore, it does not benefit the borrower. The borrowers 31, 2025, 96 per cent of staff are in position against their
continue to be liable for repayment, and banks continue to business requirements.
pursue recovery actions initiated in these accounts," he
emphasised. "The small proportion of the gap is attributable to attrition
due to superannuation and other usual factors, including
Furthermore, recovery in written-off loans is an ongoing unplanned exits," he stated. Furthermore, over the last five
process, with banks continually pursuing recovery actions years (FY20 to FY25), banks have recruited 148,687
against borrowers through various available mechanisms. employees, and for FY25 to FY26, the recruitment of 48,570
These include filing suits in civil courts or Debts Recovery employees is underway. (Source: BusinessLine)

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