Parliament Question: Corporate loans written off by PSBs

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES RAJYA SABHA UNSTARRED QUESTION NO-2786 ANSWERED ON TUESDAY, MARCH 17, 2026/ 26 PHALGUNA, 1947 (SAKA) CORPORATE LOANS WRITTEN OFF BY PSBs 2786. SHRI VIVEK K. TANKHA: Will the Minister of FINANCE be pleased to state:- (a) the total value of loans written off by Public Sector Banks for corporate borrowers (loans above ₹100 crore) in the last five fiscal years, and the actual recovery rate from these specific written-off accounts; (b) the comparative data of revenue collected via Corporate Tax versus Income Tax from individuals for FY 2024-25, whether the share of individual income tax in gross tax revenue has exceeded that of corporate tax; and (c) the total amount of Cess and Surcharges collected in the last three years but not shared with State Governments citing specific Constitutional exclusions? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a): The Reserve Bank of India (RBI) has apprised that information regarding loans written-off by Public Sector Banks (PSBs) in respect of category ‘corporate borrowers’ is not maintained by it. However, the information on write-offs in category ‘Large – Industries & Services’ is collected by RBI. Therefore, the details of loans written-off and actual recoveries made by PSBs in the said category, for domestic operations, during the financial year (FY) 2021-22 to FY2024-25, are as under. The amount recovered from written-off loans during a particular FY may pertain to the loans written-off during that particular FY or previous FYs. (Amounts in crore Rs., Rate in %) Category ‘Large – Industry & Services’ Loans Actual Recovery FY written-off Recoveries Rate (A) (B) column (B)/(A) 2020-21 90,641 31,268 34.50 2021-22 57,541 28,245 49.09 2022-23 72,108 27,030 37.49 2023-24 58,359 12,782 21.90 2024-25 39,675 7,239 18.25 Source: RBIRecovery in written-off loans is an ongoing process and banks continue pursuing their recovery actions initiated against borrowers under the various recovery mechanism available to them. The amount recovered from written-off loans during a particular FY may pertain to the loans written-off during that particular FY or previous FYs. (b): As per the Central Board of Direct Taxes (CBDT) inputs, the Gross revenue collected via Corporate Tax and Non-Corporate Tax, including Income Tax from individuals, for FY2024- 25 are as under. (Amounts in crore Rs.) Gross Collection FY Corporate Tax Non-Corporate Tax 2024-25 12,72,542 14,26,058 Source: Pr. CCA, CBDT Note: Non-Corporate Tax includes taxes paid by individuals, HUFs, Firms, Association of Persons, Body of Individuals, Local Authorities, Artificial Juridical Person. Non-Corporate tax also includes collections of Security Transaction Tax. Further, CBDT has apprised that the share of Non-Corporate Tax in Gross tax revenue has exceeded the share of Corporate Tax in FY2024-25. (c): Department of Economic Affairs (DEA) has informed that as per Article 270(1) of the Constitution of India, all taxes and duties referred to in the Union List, except the duties and taxes referred to in Articles 268 and 269 respectively, surcharge on taxes and duties referred to in Article 271 and any cess levied for specific purposes under any law made by the Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States. This Constitutional provision forms the basis for not sharing receipts of cesses and surcharges with the States. However, receipts from cesses and surcharges form part of the Consolidated Fund of India and are used to finance the development/welfare measures in the States through various Central Government schemes and initiatives. Further, the figures of collection of cesses and surcharges for the last three fiscal years are at Annex. *****Annex Rajya Sabha Unstarred question no. 2786, regarding Corporate loans written off by PSBs Collection of cesses and surcharges for the last three fiscal years (Amounts in crore Rs.) RE BE Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 A. Total Collection of 3,50,590.57 3,64,704.58 3,81,323.58 3,33,650.00 2,73,500.00 Cesses in operation (including GST Compensation cess) B. Total collection of 2,72,360.61 2,78,060.16 2,99,254.51 3,35,970.00 3,56,850.00 Surcharges Grand Total (A+B) 6,22,951.18 6,42,764.74 6,80,578.09 6,69,620.00 6,30,350.00 Source: DEA *****