Monday, December 5, 2022
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Loans worth Rs 10 lakh crore were written off by banks in 5 years, this helped in reducing NPAs

Banks NPA: Recently, Finance Minister Nirmala Sitharaman, citing the good performance of public sector banks, had told that there is a decrease in their non-performing assets (NPA), which is a sign of improving health of banks. Under this, Nirmala Sitharaman had mentioned the reduction of non-performing assets of many government banks of the country such as State Bank of India, Bank of Baroda, UCO Bank and Canara Bank.

However, now big news related to this is coming out that in the last 5 years, loans worth Rs 10 lakh crore have been written off by the banks, on the basis of which the NPAs of the banks have been halved. According to the news published in the Indian Express, banks have recovered bad loans worth Rs 1,32,036 crore, while loans worth Rs 10 lakh crore have been written off. Banks have been able to recover only 13% of the loans given to them.

Meaning of write off
Write off of banks means that such loans are written off. In the last 5 years, loans worth Rs 10,09,510 crore (US$ 123.86 billion) have been written-off, which has helped banks reduce their non-performing assets.

Actually banks declare those big loans which are not paid for more than three months (90 days) as NPA. In response to the RTI of Indian Express, the Reserve Bank of India said that in the last ten years, due to write-off, the reduction in NPA has been Rs 13,22,309 crore. RBI in its RTI reply said that the data was provided by the banks.

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