Banks have written off bad loans of Rs 10,09,511 crore over the last five fiscal years, according to Finance Minister Nirmala Sitharaman on Tuesday.
In a response to a question from the Rajya Sabha, Sitharaman stated that the non-performing assets (NPAs), including those for which full provisioning had been made at the end of four years, had been written off from the balance sheet of the relevant bank.
“In compliance with RBI guidelines and policy that has been endorsed by their boards, banks write off NPAs as part of their routine process to optimise capital, clean up their balance sheet, and take advantage of tax benefits. Scheduled Commercial Banks (SCBs) wrote off a total of Rs 10,09,511 crore during the previous five fiscal years, according to information received from RBI “She was quoted by PTI.
This news is written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.
ALL INDIA LEGAL FORUM 