New Delhi, Feb 6 (PTI) Public sector banks (PSBs) have written off loans worth Rs 53,625 crore in the six months to September this financial year, Parliament was informed today.
"Public sector banks wrote off (including through compromise), Rs 49,018 crore during 2014-18, Rs 81,683 crore in 2016-17 and Rs 53,625 crore during financial year 2017-18 up to September 30, 2017 (as per RBI data on global operations)," Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Rajya Sabha.
During five years ending March 31, 2017, PSBs had written off non-performing assets (NPAs) of Rs 2.50 lakh crore cumulatively.
Break-up wise, PSBs write off was Rs 27,231 crore in 2012-13, rising steadily to Rs 34,409 crore in 2013-14; Rs 49,018 crore in 2014-15; Rs 57,585 crore in 2015-16 and hit a high of Rs 81,683 crore in 2016-17.
Shukla was replying to a question on quantum of NPAs written-off by public sector banks over the last three years.
As per RBI guidelines, NPAs including those against which full provisioning has been made, are removed from the balance sheet of the banks on completion of four years.
"This is done for tax benefit and capital optimisation. Borrowers of such loans continue to be liable for repayment," he said.
Shukla also said that write off of NPAs does not benefit borrowing companies or individuals.
The minister said recovery of dues takes place on an ongoing basis under legal mechanisms, including securitisation and reconstruction of financial assets, enforcement of Security Interest Act, debt recovery tribunals and Lok Adalats. PTI KPM ABM