Executive Summary:
This document presents the Indian Ministry of Finance's response to questions regarding loans written off by Public Sector Banks (PSBs) over the last five years. It provides data disaggregated by borrower category and bank, information on wilful defaulters, and measures taken to reduce Non-Performing Assets (NPAs). The data covers the period from FY 2020-21 to FY 2024-25, with some data updated as of June 30, 2025.
Key Points / Main Content:
* **Loan Write-offs Data:**
* RBI collects write-off data for Large Industries and Services, not corporates.
* Bank-wise, year-wise, and category-wise details of loans written off by PSBs for domestic operations in Agriculture, MSME, Large Industry & Services, and Retail sectors are provided in Annex 1.
* **Write-offs vs. Waivers:**
* PSBs, including SBI, have not waived loans.
* Write-offs are conducted per RBI guidelines and bank board-approved policies after full provisioning (typically after four years).
* Write-offs do not release borrowers from their liabilities; recovery actions continue.
* **Recovery Mechanisms:**
* Banks pursue recovery through civil courts, Debt Recovery Tribunals, SARFAESI Act, and the Insolvency and Bankruptcy Code (IBC).
* **Wilful Defaulters:**
* RBI does not maintain data on wilful defaulters within written-off amounts.
* Data on unique borrowers classified as wilful defaulters (excluding overseas borrowers) is maintained in the Central Repository of Information on Large Credits (CRILC).
* The number of unique borrowers classified as wilful defaulters has fluctuated over the past four years, with the outstanding amount due decreasing to Rs. 1,76,693 crore as of June 30, 2025.
* **NPA Reduction Measures:**
* Gross NPAs of PSBs have declined over the last five financial years.
* Measures include IBC implementation, amendments to SARFAESI Act and Recovery of Debt and Bankruptcy Act, increased Debt Recovery Tribunal (DRT) jurisdiction, specialized stressed asset management verticals in PSBs, and RBI's Prudential Framework for stressed asset resolution.
* **Loan Accounts Written Off (Over ₹1 crore and ₹3 crore):**
* Year-wise number of loan accounts written off by PSBs, each having an outstanding amount of more than Rs. 1 crore and more than Rs. 3 crore, are detailed in Annex 2.
Impact Analysis:
* **Public Sector Banks (PSBs):**
* *Impact:* PSBs are affected by the guidelines and data reporting requirements related to loan write-offs and NPA management.
* *Action Required:* PSBs should continue to follow RBI guidelines on write-offs, pursue recovery actions, and implement measures to reduce NPAs.
* **Borrowers (Corporate, MSME, Agriculture, Retail):**
* *Impact:* Borrowers remain liable for repayment even after write-offs and are subject to recovery actions. Wilful defaulters face consequences under IBC and other regulations.
* *Action Required:* Borrowers must continue to repay loans, and wilful defaulters may face legal action under IBC and other relevant laws.
* **Reserve Bank of India (RBI):**
* *Impact:* The RBI is responsible for providing data, issuing guidelines on NPA management, and overseeing the implementation of measures to reduce NPAs.
* *Action Required:* Continue to monitor and regulate NPAs, provide necessary data, and refine guidelines for stressed asset resolution.
* **Government of India (Ministry of Finance):**
* *Impact:* The Ministry of Finance is responsible for formulating policies and taking measures to improve the financial health of PSBs and reduce NPAs.
* *Action Required:* Continue to monitor the performance of PSBs, refine policies related to NPA management, and ensure effective implementation of recovery mechanisms.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to as RBI, which provides data and guidelines related to non-performing assets and write-offs.
State Bank of India: A major Public Sector Bank (PSB) in India, often abbreviated as SBI, whose loan write-off data is specifically mentioned and analyzed.
Ministry of Finance: The Indian government ministry responsible for financial matters, which is answering questions in the Lok Sabha regarding loan write-offs by Public Sector Banks.
Lok Sabha: The lower house of the Parliament of India, where questions are being raised and answered regarding loan write-offs by Public Sector Banks.
Non-Performing Assets: Referred to as NPAs, these are loans or advances where principal or interest payments are overdue for a specified period.
Insolvency and Bankruptcy Code: Referred to as IBC, it is a law in India that fundamentally changed the creditor-borrower relationship and addresses insolvency and bankruptcy proceedings.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: An Indian law that provides a mechanism for recovery of non-performing assets.
Debts Recovery Tribunals: Referred to as DRTs, these are tribunals in India established to facilitate the recovery of debts due to banks and financial institutions.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO- 2379
ANSWERED ON MONDAY, AUGUST 4, 2025/ SRAVANA 13, 1947 (SAKA)
LOANS WRITTEN-OFF BY PSBs
2379. SMT. JYOTSNA CHARANDAS MAHANT:
SHRI K SUDHAKARAN:
DR. ALOK KUMAR SUMAN:
SHRI BENNY BEHANAN:
Will the Minister of FINANCE be pleased to state:-
(a) the total amount of loans written off by each public sector bank during the last five years,
disaggregated by borrower category (corporate, MSME, agriculture, retail, etc.) year-wise and
bank-wise including State Bank of India (SBI);
(b) whether it is fact that largest amount of Non-Performing Assets (NPAs) are waive off by
the SBI and if so, the details thereof;
(c) the number of wilful defaulters among the amount written off by public sector banks
during the above period and the total outstanding amount due to such defaulters as on date
along with the measures taken by the Government to reduce the amount of NPA;
(d) the number of loan accounts having outstanding amount more than Rs. 1 crore and more
than Rs. 3 crore, written off by public sector banks during the above period, year-wise; and
(e) whether the PSBs including SBI waived off loans for farmers and small businessmen and
if so, the details thereof along with the number of wilful defaults started in the Covid and
Post-Covid period?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (e): The Reserve Bank of India (RBI) has apprised that information regarding non-
performing assets (NPAs) written-off in respect of category ‘corporate’ is not maintained by
it. However, as per RBI data, the information on write-offs in category ‘Large Industries and
Services’ is collected by RBI.
Therefore, bank-wise, year-wise and category-wise details of loans written-off by PSBs for
domestic operations, for categories Agriculture and Allied Activities, MSME (Micro, Small,
Medium Enterprises), Large – Industry & Services and Retail loans, during the last five
financial years are at Annex-1.As per the inputs received from the Public Sector Banks (PSBs), including SBI, banks have
not waived-off loans given to the borrowers.
Banks write-off NPAs, including, inter-alia, those in respect of which full provisioning has
been made on completion of four years, as per RBI guidelines and policy approved by banks’
Boards. Such write-off does not result in waiver of liabilities of borrowers and therefore, it
does not benefit the borrower. The borrowers continue to be liable for repayment and banks
continue to pursue recovery actions initiated in these accounts.
Further, recovery 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, such as filing of a suit in Civil Courts or in Debts Recovery Tribunals,
action under the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, filing of cases in the National Company Law Tribunal under the
Insolvency and Bankruptcy Code, etc.
RBI has apprised that the number of wilful defaulters among the amount written off by
PSBs, is not maintained by it. However, as per RBI data on wilful defaulters (excluding
overseas borrowers) reported by PSBs in Central Repository of Information on Large Credits
(CRILC), the details of unique borrowers classified as wilful defaulters are as under.
Number
of Unique
Aggregate
Borrowers
As on loan outstanding
classified
(in crore Rs.)
as Wilful
Defaulter
31-03-2022 2,280 2,05,461
31-03-2023 2,120 1,85,773
31-03-2024 2,153 1,85,483
31-03-2025 2,101 1,78,766
30-06-2025 2,104 1,76,693
Source: RBI
Comprehensive measures have been taken by the Government and RBI to recover and
reduce NPAs, enabled by which gross NPAs of PSBs have been declining during the last five
financial years as shown below.
Amount in crore Rs.
Gross NPA
As on Gross NPAs
Ratio (%)
31.03.2021 6,16,616 9.11
31.03.2022 5,40,958 7.28
31.03.2023 4,28,197 4.97
31.03.2024 3,39,541 3.47
31.03.2025 2,83,650 2.58
Source: RBI (provisional data for FY 2024-25)Measures taken include, inter alia, the following:
(1) Change in credit culture has been effected, with the Insolvency and Bankruptcy Code
(IBC) fundamentally changing the creditor-borrower relationship, taking away control
of the defaulting company from promoters/owners, and debarring wilful defaulters
from the resolution process. To make the process more stringent, personal guarantor to
corporate debtor has also been brought under the ambit of IBC.
(2) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 and the Recovery of Debt and Bankruptcy Act have been amended
to make it more effective.
(3) Pecuniary jurisdiction of Debt Recovery Tribunal (DRTs) was increased from Rs. 10
lakhs to Rs. 20 lakhs to enable the DRTs to focus on high value cases resulting in
higher recovery for the banks and financial institutions.
(4) Public Sector Banks have set-up specialized stressed assets management verticals and
branches for effective monitoring and focused follow-up of NPA accounts, which
facilitates quicker and improved resolution/ recoveries. Deployment of Business
correspondents and adoption of Feet-on-street model have also boosted the recovery
trajectory of NPAs in banks.
(5) Prudential Framework for resolution of stressed assets was issued by RBI to provide a
framework for early recognition, reporting and time bound resolution of stressed assets,
with a build-in incentive to lenders for early adoption of a resolution plan.
As per PSBs inputs, year-wise number of loan accounts written-off by PSBs, each having
outstanding amount of more than Rs. 1 crore and more than Rs. 3 crore, during the last five
financial years, are at Annex-2.
*****Annex-1
Lok Sabha Unstarred question no. 2379, regarding Loans Written-off by PSBs
Bank-wise, year-wise and category-wise NPAs written-off by PSBs
(Amounts in crore Rs.)
FY 2020-21
Agriculture Industry Services
Bank Retail
and Allied Micro and Micro and
Medium Large Medium Large Loans
Activities Small Small
Bank of Baroda 108 428 121 7,171 0 0 102 63
Bank of India 643 472 156 4,369 894 111 1,521 141
Bank of Maharashtra 178 31 - 2,610 79 0 1,805 165
Canara Bank 968 252 251 2,498 10 - 532 97
Central Bank of India 199 46 1 4,115 71 26 1,483 51
Indian Bank 635 101 15 6,425 148 1 965 81
Indian Overseas Bank 293 66 13 3,073 34 6 778 58
Punjab and Sind Bank 71 - - - - - - -
Punjab National Bank 10 4 0 14,411 539 206 103 1
State Bank of India 3,581 147 126 18,226 5,218 512 4,720 1,447
UCO Bank 497 303 53 5,181 243 3 151 570
Union Bank of India 3,726 708 311 5,229 247 217 5,172 740
(Amounts in crore Rs.)
FY 2021-22
Agriculture Industry Services
Bank Retail
and Allied Micro and Micro and
Medium Large Medium Large Loans
Activities Small Small
Bank of Baroda 446 318 36 5,005 5,309 20 3,595 21
Bank of India 571 472 0 1,950 521 0 3,798 109
Bank of Maharashtra 599 527 54 158 828 47 440 380
Canara Bank 278 36 74 165 51 259 86
Central Bank of India 212 80 11 201 62 3 604 64
Indian Bank 177 925 597 2,480 422 567 360 1,037
Indian Overseas Bank 219 105 21 1,884 151 - 390 801
Punjab and Sind Bank 84 4 - 602 2 - 16 17
Punjab National Bank 342 661 80 8,199 489 86 2,313 283
State Bank of India 2,749 2,410 409 4,781 1,878 41 5,591 1,300
UCO Bank 661 154 16 901 311 12 80 147
Union Bank of India 2,366 1,100 304 7,493 292 739 6,279 232
(Amounts in crore Rs.)
FY 2022-23
Agriculture Industry Services
Bank Retail
and Allied Micro and Micro and
Medium Large Medium Large Loans
Activities Small Small
Bank of Baroda 1,139 1,118 429 4,616 849 345 4,017 396
Bank of India 866 645 36 2,168 377 7 1,111 115
Bank of Maharashtra 597 137 0 354 196 66 - 141
Canara Bank 2,525 997 71 153 80 1 8,482 109
Central Bank of India 1,273 700 225 5,622 568 181 952 738
Indian Bank 688 117 58 3,370 223 41 2,942 512
Indian Overseas Bank 372 372 20 1,881 41 - 91 454
Punjab and Sind Bank 48 94 9 634 226 5 1,008 258
Punjab National Bank 1,478 955 53 7,495 1,331 12 4,384 154
State Bank of India 4,777 1,058 153 9,372 2,542 191 3,885 1,868
UCO Bank 478 68 0 486 210 23 - 193
Union Bank of India 1,310 1,755 1,159 8,390 3,174 1,559 693 207
Source: RBI, domestic operationsLok Sabha Unstarred question no. 2379, regarding Loans Written-off by PSBs
Bank-wise, year-wise and category-wise NPAs written-off by PSBs
(Amounts in crore Rs.)
FY 2023-24
Agriculture Industry Services
Bank Retail
and Allied Micro and Micro and
Medium Large Medium Large Loans
Activities Small Small
Bank of Baroda 3,056 253 141 2,407 305 69 842 661
Bank of India 17 757 71 2,371 1,289 6 2,000 186
Bank of Maharashtra 161 110 0 21 314 6 300 69
Canara Bank 351 266 570 2,899 2,405 101 2,795 652
Central Bank of India 1,866 418 45 2,799 933 108 3,051 781
Indian Bank 1,486 646 572 3,135 687 176 448 1,311
Indian Overseas Bank 692 451 167 3,350 21 - 1,111 1,186
Punjab and Sind Bank - - - 211 - - 585 -
Punjab National Bank 2,166 1,438 36 10,084 794 151 1,821 191
State Bank of India 4,575 246 57 4,725 572 152 3,130 1,945
UCO Bank 282 17 - 616 11 - 189 156
Union Bank of India 4,250 1,178 235 5,478 1,743 479 3,994 901
(Amounts in crore Rs.)
FY 2024-25
Agriculture Industry Services
Bank Retail
and Allied Micro and Micro and
Medium Large Medium Large Loans
Activities Small Small
Bank of Baroda 671 552 342 575 618 81 1,552 52
Bank of India 1,270 742 232 2,042 1,808 6 1,179 586
Bank of Maharashtra 288 74 4 15 301 20 24 69
Canara Bank 610 1,755 442 3,950 2,967 372 1,585 357
Central Bank of India 135 110 27 646 153 4 2,209 86
Indian Bank 1,458 422 49 1,028 1,036 0 289 635
Indian Overseas Bank 303 320 48 14 461 47 2,330 240
Punjab and Sind Bank 0 70 10 483 111 14 540 294
Punjab National Bank 1,558 163 36 4,213 786 44 1,280 1,749
State Bank of India 4,174 390 124 7,108 1,104 34 4,384 2,788
UCO Bank 187 64 33 192 419 1 121 224
Union Bank of India 2,364 1,421 534 3,037 1,050 359 881 1,113
Source: RBI, domestic operations
* RBI provisional data for FY 2024-25
*****Annex-2
Lok Sabha Unstarred question no. 2379, regarding Loans Written-off by PSBs
Number of written-off loan accounts by PSBs, each having outstanding amount
of more than Rs. 1 crore and more than Rs. 3 crore
(Amounts in crore Rs.)
Number of written-off loan accounts each having outstanding amount
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
more more more more more more more more more more
S.N. Bank
than than than than than than than than than than
Rs. 1 Rs. 3 Rs. 1 Rs. 3 Rs. 1 Rs. 3 Rs. 1 Rs. 3 Rs. 1 Rs. 3
crore crore crore crore crore crore crore crore crore crore
1 Bank of Baroda 168 120 254 201 512 441 642 283 240 188
2 Bank of India 84 44 165 78 135 74 137 79 104 47
3 Bank of Maharashtra 69 52 432 159 256 102 360 90 374 123
4 Canara Bank 209 136 154 124 288 226 269 223 370 276
5 Central Bank of India 182 124 132 57 326 240 207 199 105 56
6 Indian Bank 88 80 127 107 180 137 624 289 79 50
7 Indian Overseas Bank 77 49 74 48 74 49 201 126 82 28
8 Punjab and Sind Bank 0 0 24 21 118 52 14 14 39 34
9 Punjab National Bank 28 13 87 68 1,964 774 1,817 656 1,456 624
10 State Bank of India 1,014 649 586 378 512 339 407 250 420 216
11 UCO Bank 228 136 190 79 79 46 63 43 128 38
12 Union Bank of India 132 108 296 197 397 312 1,609 827 434 235
Source: Banks
*****