Loan Write-off

Banks have written off loans worth Rs 9.90 lakh crore in the last five financial years, Parliament was informed on Tuesday. During 2023-24, banks loan write off was at Rs 1.70 lakh crore, as against Rs 2.08 lakh crore in the previous fiscal, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. Write-off was highest at Rs 2.34 lakh crore during 2019-20, which came down to Rs 2.02 lakh crore in the following year and to Rs 1.74 lakh crore in 2021-22. As per the RBI guidelines and policy approved by banks' boards, NPAs, including those in respect of which full provisioning has been made on completion of four years, are removed from the balance-sheet of the bank concerned by way of write-off, he said. "Banks evaluate/consider the impact of write-offs as part of their regular exercise to clean up their balance-sheet, avail tax benefit and optimise capital, in accordance with the said guidelines and policies of the respective boards," he said in a re

The case has been opened today by Tata Steel, and the hearing will continue on April 8, 2024

Banks have written off Rs 10.57 lakh crore during the last five financial years, of which Rs 5.52 lakh crore was in respect of loans pertaining to large industries, the government informed the Parliament on Tuesday. "As per RBI data, scheduled commercial banks (SCBs) have written off an aggregate loan amount of Rs 10.57 lakh crore during the last five financial years," Minister of State for Finance Bhagwat Karad said in reply to a question in the Rajya Sabha. The scheduled commercial banks have also recovered Rs 7.15 lakh crore of non-performing assets (NPAs) during the five-year period. "Comprehensive steps have been taken to recover NPAs, enabled by which, SCBs have made an aggregate recovery of Rs 7,15,507 crore (RBI provisional data for FY 2022-23) in NPA accounts, including written-off loans, during the last five financial years," he said. In reply to a separate question, Karad said: "Scheduled commercial banks have written off an aggregate amount of Rs 5.52 lakh crore in resp

Karad also informed the Lok Sabha that the Centre has written off loans worth over Rs 10 trillion, in the last five years

Principal chief advisor to West Bengal chief minister Amit Mitra said on Thursday that massive write-offs in the last nine years and low recovery is presently ailing the banking sector of the country. Speaking at a CII banking session here, Mitra said that in the last nine years from 2014-2023, Rs 14.56 lakh crore has been written off from the books of the banks. During 2021-22, the written-off amount was Rs 1.75 lakh crore, and subsequently Rs 2.09 lakh crore in the succeeding fiscal. Mitra, also the former finance minister of the West Bengal government, said that union minister of state for finance Bhagwat Karad had informed Parliament that out of the total written-off amount of Rs 14.56 lakh crore, Rs 7.40 lakh crore are for large industry and services segments. He said, however, the recovery had been low to the tune of Rs 2.04 lakh crore out of Rs 14.56 lakh crore, which means more than Rs 12 lakh crore is yet to be recovered. According to him, the amount of write-offs in the

The GST Council's decision to levy a 28 per cent tax on real money online gaming industry will lead to an impairment of USD 2.5 billion of investment made in the segment, a group of 30 Indian and foreign Investors said in a joint letter to Prime Minister Narendra Modi. In a letter dated July 21, leading Investors Including Peak XV Capital, Tiger Global, DST Global, Bennett, Coleman & Company Limited, Alpha Wave Global, Chrys Capital, Lumikai etc have sought the Prime Minister's intervention in the decision of GST Council which is expected to hit prospective investment to the tune of USD 4 billion in the next 3-4 years. "The current GST proposal will set up the most onerous tax regime for the gaming sector globally, which will lead to a potential write-off of the USD 2.5 billion capital invested in this sector," the letter said. Investors said the GST Council's decision has caused shock and dismay and will substantially and meaningfully erode investor confidence in the backing of ..

The write-offs are technical or prudential in nature, which means the banks have made 100 per cent provisions against the loans

'Congress and Rahul Gandhi should introspect why they fail to play a constructive role in cleaning up the system,' she said

Resolution delays coupled with rising provision cover on large legacy bad loans (nearing 90 per cent) could mean that loan write-offs will continue to be high, particularly for state-run banks

The state-owned banks account for a dominant share (around 90 per cent) of impaired loan stock and have cumulatively written-off nearly 30 billion dollars in bad loans over the past three years

Their take: If Kingfisher Airlines promoter and 62 other biggies can get relief, why not us?