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Banks bail out defaulters : SBI turns over ₹ 10 lakh crore loans in 5 years

Banks loan loan write off: Finance Minister Nirmala Sitharaman said that in the last 5 years, banks have written off a total amount of more than 10 lakh crores and only 13 percent of these written off loans have been recovered so far. (Loan Recovery) has been done, which makes it clear that banks are taking a indifferent attitude in the matter of recovery from loan defaulters.

Banks are adopting a policy like ‘Sitam on account holders and Rahm on loan defaulters’. Banks have failed to recover from loan defaulters by levying penalties from account holders by showing various norms like not maintaining minimum balance. As the incidence of loan defaults increases, the burden of non-performing assets (NPAs) i.e. bad loans has increased on banks. According to the figures presented by the government, in the last five years, banks have defaulted on loans of more than 10 lakh crore rupees, which means that the banks do not see any hope of recovering such a huge amount of money.

10.09 lakh crore rupees loan from Mandiwali in 5 years

According to the information given to Finance Minister Nirmala Sitharaman in the Rajya Sabha, all scheduled banks of the country have written off loans worth Rs 10,09,510 crore in the last five years. The finance minister added that the amount given in the form of credit from the banks was trapped, which after writing off, the banks have removed it from their balance sheets. It also includes loans classified as NPA, for which full provision was made in the balance sheet of banks after 4 years.

Banks have written off the most loans in which year?

If we look at the loans sanctioned by the banks during the last five years, it is Rs 1,61,328 crore in financial year 2017-18, Rs 2,36,265 crore in financial year 2018-19, Rs 2,34,170 crore in financial year 2019-20, financial year 2020- Loans of Rs 2,02,781 crore have been written off in FY21 and Rs 1,74,966 crore in FY2021-22. Thus, in the financial year 2019-20, banks have written off the maximum amount of loans and it has decreased in the subsequent years.

Only 13 percent of the loans could be recovered

According to the information provided by the Finance Ministry in the Rajya Sabha, only 13 per cent of the loans written off by the Scheduled Commercial Banks (SCBs) have been recovered during the last five financial years. Banks have written off a total of Rs 10,09,510 crore of loans in five years, on this basis the recovery figure of 13 percent of loans written off is Rs 1,32,036 crore.

If we look at the loan recovery figures, the banks have recovered Rs 12,881 crore in FY 2017-18, Rs 25,501 crore in FY 2018-19, Rs 30,016 crore in FY 2019-20, Rs 30,104 crore in FY 2020-21 and Rs 30,104 crore in FY 2021-22. 33,534 crores of rupees have been barely recovered.

Loan write off and recovery figures for last five years
financial yearLoan write offRecovery of Loans
FY17-181,61,328 crores12,881 crore
FY18-192,36,265 crores25,501 crore
FY19-202,34,170 crores30,016 crore
FY20-212,02,781 crore30,104 crores
FY21-221,74,966 crores33,534 crore
total amount10,09,510 crore1,32,036 crores
Which bank has made the most loans?

All the scheduled banks of the country have written off more than Rs 10 lakh crore of non-performing loans in the last five years. If we talk about banks, the largest state-owned lender State Bank of India (SBI) has written off the highest loan of Rs 1.65 lakh crore in the last four years. In the second place, Punjab National Bank has written off loans worth 59,807 lakh crore rupees during the last four years.

SBI has written off loans worth Rs 19,666 crore in the financial year 2021-22 itself. So in its previous financial year 2020-21, a loan of Rs 34,402 crore has been written off.

Which bank wrote off the loan of how much amount
Names of BanksLoan write off
SBI1.65 lakh crore
PNB59,807 crore
IDBI Bank33,135 crores
ICICI Bank42,164 crores
HDFC Bank31,516 crore
NPAs of increasing loan-crunched banks have come down

Bad loans i.e. non-performing assets (NPAs) at banks have come down in the last few years thanks to loan write-offs. According to Reserve Bank of India’s (RBI) June 2022 Financial Stability Report, the gross non-performing asset (NPA) ratio of banks fell to 5.9 percent in March 2022, a six-year low. Similarly, the Net Non-Performing Assets (NNPA) ratio also declined to 1.7 percent at the end of March 2022.

Action taken against 3,312 bank officials at fault

Giving further information, Finance Minister Sitharaman said that if it is found that the involvement of the bank official in the embezzlement of the loan amount, then action is taken against such persons under the rules. According to information received from public sector banks, during the last 5 financial years a total of 3,312 bank officials at the level of AGM or above have also been prosecuted after being found involved and responsible in NPA related cases.

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