Parliament Question: Recovery of Bad Loans by Public Sector Banks

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO- 2392 ANSWERED ON MONDAY, 3 AUGUST, 2026/SHRAVANA 12, 1948 (SAKA) Recovery of Bad Loans by Public Sector Banks 2392. SHRI RADHAKRISHNA Will the Minister of FINANCE be pleased to state:- (a) the amount of loans written off by Public Sector Banks during the last five years, bank-wise and year-wise; (b) the amount recovered from such written-off accounts during the same period, year-wise and bank-wise and the percentage it represents of the total amount written off; (c) the break-up of loans written off during the last five years, sector-wise (agriculture, industry, MSME, retail); and (d) the outstanding amount owed by wilful defaulters as on date and the number of such cases actually referred for criminal action, as distinct from those merely declared willful defaulters? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) and (b): Bank-wise and year-wise details of Non-Performing Assets (NPAs) written-off by Public Sector Banks (PSBs) and the amount recovered from written off accounts including their percentage for the last five Financial years, are at Annexure-1. 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. 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. Further, as per the Reserve Bank of India (RBI) -Resolution of Stressed Assets Directions 2025, issued for commercial banks, write-off (a major portion of which is due to technical/prudential/advances under collection) is an accounting procedure undertaken by a bank to adjust its balance sheets. 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. (c): The break-up of loans written off during the last five financial years, for the sectors viz., agriculture, industry, services, MSME and retail are at Annexure-2. (d): As per inputs received from Public Sector Banks (PSBs), the outstanding amount owed by wilful defaulters of Rs. 25 lakh and above as on 30.6.2026 is Rs 2,85,015 crore against 15,930 wilful defaulters. Out of the total number of wilful defaulters, 7,190 cases have been referred for criminal actions having a default of Rs. 1,92,187 crore. *****Annexure-1 Lok Sabha Unstarred question no. 2392, regarding Recovery of Bad Loans by Public Sector Banks Details of NPAs written off by Public Sector Banks (Amounts in crore Rs.) Bank Name FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26* Amount Recovery Recovery in Amount Recovery Recovery in Amount Recovery Recovery in Amount Recovery Recovery in Amount Recovery Recovery in of loan from written off of loan from written off of loan from written off of loan from written off of loan from written off written written off accounts as written written off accounts as written written off accounts as written written off accounts as written written off accounts as off accounts percentage of off accounts percentage of off accounts percentage of off accounts percentage of off accounts percentage of write off write off write off write off write off (in %) (in %) (in %) (in %) (in %) (A) (B) C=(B/A)*100 (A) (B) C=(B/A)*100 (A) (B) C=(B/A)*100 (A) (B) C=(B/A)*100 (A) (B) C=(B/A)*100 Bank of Baroda 17,967 2,510 13.97 17,998 3,277 18.21 10,518 3,943 37.49 8,796 4,767 54.20 6,330 3,425 54.11 Bank of India 10,443 1,097 10.50 8,694 1,207 13.88 9,897 1,467 14.82 7,959 2,365 29.71 5,923 2,674 45.15 Bank of Maharashtra 3,118 642 20.59 1,491 943 63.25 990 985 99.49 796 1,375 172.74 1,209 1,423 117.70 Canara Bank 8,210 2,747 33.46 12,760 5,110 40.05 11,827 6,032 51.00 14,350 6,924 48.25 13,541 6,565 48.48 Central Bank of India 1,236 332 26.86 10,258 1,283 12.51 10,001 1,433 14.33 3,370 1,716 50.92 1,719 2,271 132.11 Indian Bank 8,347 1,612 19.31 7,952 2,177 27.38 8,734 1,879 21.51 4,916 2,548 51.83 6,562 2,335 35.58 Indian Overseas Bank 3,769 19 0.50 3,412 90 2.64 7,179 2,430 33.85 3,885 2,454 63.17 1,192 2,180 182.89 Punjab and Sind Bank 1,134 261 23.02 2,283 512 22.43 796 691 86.81 1,521 551 36.23 632 707 111.87 Punjab National Bank 18,312 3,441 18.79 16,578 6,508 39.26 18,317 6,101 33.31 12,159 4,926 40.51 7,696 5,931 77.07 UCO Bank 3,851 1,546 40.15 2,575 1,624 63.07 1,938 1,487 76.73 1,566 2,624 167.56 1,278 1,327 103.83 Union Bank of India 19,484 2,750 14.11 19,175 5,549 28.94 18,264 3,987 21.83 11,634 4,311 37.06 6,643 3,997 60.17 State Bank of India 19,666 7,782 39.57 24,061 7,097 29.50 16,161 6,934 42.91 20,309 8,002 39.40 17,803 10,054 56.47 Source: RBI (*provisional data for March 2026) *****Annexure-2 Lok Sabha Unstarred question no. 2392, regarding Recovery of Bad Loans by Public Sector Banks Sector wise break up of loans written off by Public Sector Banks (Amounts in crore Rs.) FY FY FY FY FY Sector 2021-22 2022-23 2023-24 2024-25 2025-26* Agriculture and Allied Activities 8,703 15,552 18,901 13,017 19,418 Industry 46,246 54,771 45,767 31,265 17,266 Services 37,149 39,817 30,586 28,168 16,513 Retail Loans 4,478 5,145 8,039 8,193 9,085 MSMEs (Industries & Services) 20,221 22,479 17,993 19,758 18,565 Source: RBI (*provisional data for March 2026) *****