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
May 13,2025

A new chapter is unfolding for football in Mangaluru as the football ground adjacent to Nehru Maidan receives a modern artificial turf, with completion expected by the end of May. This long-awaited upgrade promises to significantly enhance the playing experience for both budding and seasoned footballers in the region.

The project, spearheaded by Mangaluru Smart City Limited (MSCL), involves laying synthetic turf across the 90,000 sq ft ground at a cost of ₹2.5 crore. Equipped with efficient drainage systems, the revamped ground will support uninterrupted play throughout the year, regardless of weather conditions.

“This is a long-pending demand of the football community here,” said D.M. Aslam of the Dakshina Kannada District Football Association. “We expect the turf work to be completed in the next two weeks. Currently, around 150 children practice regularly at the ground, and we anticipate that number to rise once the new surface is open.”

MSCL General Manager (Technical), Arun Prabha K.S., noted that while the project had been planned for some time, groundwork officially began after last year’s monsoon league concluded in August. “Once completed, this facility will be a full-fledged synthetic turf suitable for training, local tournaments, and league matches,” he said.

With the inauguration expected soon after the final touches are completed, the new astro turf is set to elevate the city’s football infrastructure and serve as a springboard for talent development across the district.

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News Network
May 14,2025

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Border Security Force (BSF) jawan Purnam Kumar Shaw who was in Pakistan’s custody since April 23, has been handed over to India. The BSF said in a statement that Shaw was handed over to India at 10:30 am through the Attari border check post in Amritsar. 

BSF stated that Shaw is being debriefed after his handover. 

The handover was conducted peacefully and in accordance with established protocols, said the force. 

"With the consistent efforts of BSF through regular flag meetings with Pakistan rangers and through other communication channels, the repatriation of BSF constable has become possible," said BSF. 

Shaw, a jawan of the 182nd Battalion, was detained by the Pakistan Rangers after he inadvertently crossed the International Border near Punjab’s Ferozepur. 

The jawan on duty was stationed near the border fence. He was in uniform and was carrying his service rifle, when he moved towards a shaded area for some rest. In doing so, he had crossed into Pakistani territory, where he was apprehended by the Pakistani Rangers. 

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News Network
May 2,2025

Mangaluru: Dakshina Kannada district has secured the top position in Karnataka in the SSLC (Class 10) results for the academic year 2024–25, with a pass percentage of 91.12%, as announced on Friday.

In the previous academic year (2023–24), the district had ranked second in the state with a higher pass percentage of 92.12%. Despite a 1% drop in the pass rate this year, the district has risen to the top position. In 2022–23, it had ranked 17th with 89.52%.

Deputy Director of Public Instruction (DDPI) Venkatesh S Patagar attributed the district’s improved rank to several focused initiatives. Among them were the timely completion of the syllabus by December 2024 and subject-wise special classes.

Special attention was given to slow learners through dedicated support classes. The department also organized fortnightly parent meetings to track students' academic progress.

To instill discipline and a consistent study routine, schools made regular wake-up calls to students in the mornings and evenings. Other initiatives included model question paper practice, the 'Jnana Sinchana' live YouTube series, online doubt-clearing sessions, and interactive radio phone-in programs.

Students were also encouraged to attempt the 'Vijayeebhava' question paper series, developed and published by the District Institute of Education and Training (DIET), Udupi.

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