NEW DELHI: Indian banks wrote off loans totalling 10.6 trillion rupees (about US$127 billion) during the last five financial years, according to the Finance Ministry.
The ministry told the lower house of parliament in response to a question that more than half of this amount, about US$66.6 billion, involved loans given by scheduled commercial banks (SCBs) to large industries and services.
In the last financial year, from April 2022 to March 2023, the loan amount written off by banks was about US$24 billion.
Written-off accounts do not show as an asset on the bank’s balance sheet but the bank continues to pursue loan recovery actions through various methods such as filing of lawsuits, bankruptcy proceedings or sale of bad loans. – BERNAMA
