Banks write off over ₹2.09 lakh crore bad loans in FY23; ₹10.57 lakh crore in last 5 years

News Network
July 24, 2023

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Banks in India wrote off bad loans totaling more than ₹2.09 lakh crore during the FY23, according to information obtained through Right to Information (RTI) queries. 

This brings the total loan write-offs by the banking sector to a significant ₹10.57 lakh crore in the past five years, as per data provided by the Reserve Bank of India (RBI).

Loan write-offs by banks increased to ₹209,144 crore during FY23, compared to ₹174,966 crore in FY22 and ₹202,781 crore in FY21, as per the RTI data. Banks have been utilising loan write-offs as a strategy to reduce the burden of non-performing assets on their books. 

However, the recoveries from these written-off loans have been quite dismal, with only ₹30,104 crore recovered in FY21, ₹33,534 crore in FY22 and ₹45,548 crore in FY23.
 
The RBI's RTI response reveals that out of the ₹586,891 crore loans written off in the last three years, banks were able to recover only ₹109,186 crore, indicating a meagre recovery rate of 18.60% during this period.

The loan write-offs have helped banks in reducing their Gross Non-Performing Assets (GNPA) to a 10-year low of 3.9% of advances by March 2023. Over the years, gross NPAs of banks have decreased from ₹10.21 lakh crore in FY18 to ₹5.55 lakh crore by March 2023, mainly due to the impact of loan write-offs.

Taking this into account, the total defaulted loans (including write-offs but excluding recovered loans) amount to approximately ₹10.32 lakh crore. If the write-offs are included, the total Non-Performing Asset (NPA) ratio would have been 7.47% of advances, higher than the 3.9 percent reported by the banks.

What happens when a loan is written off?

When a bank writes off a loan, it removes it from the bank's asset book. This action is taken when the borrower has failed to repay the loan, and the chances of recovering the outstanding amount are very low. 

The defaulted loan, also known as NPA, is then transferred from the assets side and recorded as a loss. A loan is classified as an NPA when the borrower fails to make the principal or interest payment for a period of 90 days or more.

Even after the write-off, the bank is required to continue its efforts to recover the loan using various options. Provisioning must also be made for the written-off amount. As a result of the write-off, the bank's tax liability is reduced as the written-off amount is deducted from the profit.

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News Network
October 26,2024

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Iran’s air defense force has confirmed Israeli attacks targeting positions in Tehran, Khuzestan and Ilam provinces, saying the aggression was successfully thwarted. 

The Zionist regime launched its strike against Iran early Saturday, weeks after the Islamic Republic’s massive ballistic missile barrage on Israel, with the Zionist military saying the “precise strikes” by the Israeli Air Force targeted strategic military sites — specifically drone and ballistic missile manufacturing and launch sites, as well as air defense batteries.

The Iran's integrated air defense system successfully intercepted and countered the act of aggression. 

“Despite the previous warnings of the officials of the Islamic Republic to the criminal and illegal Zionist regime to avoid any adventurous action, this fake regime attacked parts of military centers in the provinces of Tehran, Khuzestan and Ilam this morning in a tension-causing action,” the air defense force said in a statement on Saturday morning.

The attacks caused limited damage in some locations and the dimensions of the incident are under investigation, the statement added.

Earlier, security sources said the loud sounds heard by some people in the vicinity of Tehran were due to the activation of air defense systems.

Iran’s official IRNA news agency cited a security source as saying on Saturday morning some of the sounds heard in the capital were caused by “defense activity in Tehran.”

The news agency said there were no reports of incidents that required assistance and that the situation at Mehrabad International Airport and the Imam Khomeini International Airport was “normal.”

IRNA said Iranian air defenses “successfully shot down adversarial targets in the airspace around Tehran province.”

Footage shared online captured what appeared to be interceptions over the Iranian capital.

Tasnim News Agency reported on Saturday morning that the situation was normal at Imam Khomeini International Airport and Mehrabad Airport.

No missile strike or impact occurred on Islamic Revolution Guards Corps (IRGC) military centers in the west and southwest of Tehran, the agency reported.

According to information obtained by the news agency, there has been no impact on IRGC military centers in the west or southwest of Tehran.

The sounds heard are related to the army’s air defenses engaging Israeli military actions in three areas around Tehran.

Informed sources told Tasnim that Iran is ready to respond to Israeli aggression, "as previously stated."

"Iran reserves its right to respond to any form of aggression, and there is no doubt that Israel will receive a proportional reaction to any action taken."

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News Network
October 21,2024

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The UN’s special rapporteur on the human rights situation in the occupied Palestinian territories has described Israel’s ongoing genocide in the Gaza Strip as “the collective shame of the century” amid the failure of the international community to protect Palestinians’ rights.

Francesca Albanese made the remarks in an X post on Sunday, as more than a year of the Israeli onslaught has flattened Gaza, killed tens of thousands of innocent people, and displaced almost the entire population in the besieged territory, often multiple times.

“In Gaza, the collective shame of the century continues unabated and unstopped, in defiance of every norm of international law and morale,” she said.

“The Palestinians, exhausted by relentless attacks on their bodies and souls are abandoned to their tormentors.”

Albanese also noted that “summary executions, mass forced displacements, and other egregious abuses” that are being perpetrated by the occupation forces against Palestinians in Gaza are all “a disgraceful testament to our global failure to protect basic human rights.”

“The United Nations, once a believed beacon of hope and a force for peace, are crumbling under the weight of this shame - and the pressure of the inaction or complicity of its most powerful member states,” she emphasized.

Israel unleashed its brutal Gaza offensive on October 7, 2023, after the Hamas resistance group carried out its historic operation against the usurping entity in retaliation for the regime’s intensified atrocities against the Palestinian people.

The Tel Aviv regime has so far killed at least 42,603 Palestinians, mostly women and children, and injured 99,795 others, according to the Gaza Health Ministry.

In a violation of international law, Israel has issued mass evacuation orders in Gaza and deliberately targeted schools and hospitals, used as shelters by displaced Palestinians.

The US and its allies, which have been supporting Israel, have prevented the UN from putting an end to the brutal aggression against the Gaza Strip despite an unprecedented humanitarian catastrophe there.

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News Network
October 22,2024

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Bengaluru, Oct 22: Heavy rainfall has once again turned Bengaluru’s streets into rivers, with large-scale waterlogging paralyzing India’s IT capital. As residents brace for more storms, the India Meteorological Department (IMD) forecasts a day filled with thunderstorms, predicting minimum temperatures around 21°C.

"Bengaluru is expected to see a cloudy sky today, with light to moderate rainfall and thunderstorms impacting both urban and rural regions," stated the IMD. The maximum temperature is likely to reach 29°C, while the minimum will hover at 21°C.

Waterlogged streets have significantly slowed down traffic, with major bottlenecks reported along Sarjapura Road near the Wipro and RBD Layout junctions, according to police reports.

The flooding has sparked fresh criticism from opposition parties, who have seized the opportunity to target the Congress-led state government’s handling of the city's infrastructure.

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