India’s Public Sector Banks (PSBs) have written off more than ?12 lakh crore in bad loans between FY2015–16 and FY2023–24. Despite the massive write-offs, the recovery rate remains significantly low, sparking concerns over accountability and lending practices.

Key Points:

• PSBs have written off a total of ?12.08 lakh crore in non-performing assets (NPAs) over the last nine financial years.
• The data was revealed by the Ministry of Finance in response to a query in the Rajya Sabha.
• Recovery from written-off loans during this period remains below 20%, indicating poor return from defaulting borrowers.
• State Bank of India (SBI) accounted for the highest amount of write-offs among all public sector banks.
• The government maintains that write-offs are part of regular banking operations and do not mean waiving loans, as recovery efforts continue through legal channels.