Banks write off loans price Rs 11.17 lakh crore in final six years

By PTI

NEW DELHI: Banks have written off Rs 11.17 lakh crore dangerous loans from their books within the final six years until monetary 12 months 2021-22, Parliament was knowledgeable on Tuesday.

The non-performing belongings (NPAs), together with these in respect of which full provisioning has been made on completion of 4 years, are faraway from the steadiness sheet of the financial institution involved by means of write-off, Minister of State for Finance Bhagwat Karad stated in a written reply.

Banks write off NPAs as a part of their common train to scrub up their steadiness sheet, avail tax profit and optimise capital, he stated, including, the write-off is carried out by the banks in accordance with RBI tips and coverage permitted by their boards.

“As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years,” he stated.

With regard to the record, together with names of write-offs/defaulters who’ve defaulted greater than Rs 1 crore to the general public sector banks, RBI has knowledgeable that borrower-wise info on written off mortgage accounts just isn’t maintained by it, he stated.

In reply to a different query, Karad stated, the Reserve Bank of India (RBI) has knowledgeable that the whole variety of wilful defaulters every having excellent mortgage of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017 and 12,439 as on June 30, 2022; whereas in personal sector financial institution, it was 1,616 as on June 30, 2017 and a couple of,447 as on June 30, 2022.

He additional stated, “RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively.”

The record of suit-filed wilful defaulters of Rs 25 lakh and above is out there within the public area on the web sites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are usually not in public area.

The Enforcement Directorate (ED) has knowledgeable that 515 fraud circumstances, together with circumstances associated to wilful defaulters, have been recorded since May 1, 2017 beneath the provisions of Prevention of Money Laundering Act (PMLA), 2002.

As on December 15, 2022, he stated, in these circumstances, belongings price Rs 44,992 crore (approx.) have been connected and 39 prosecution complaints have been filed by the Directorate.

Further, as on December 15, 2022, belongings price Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been connected since May 2017 by the ED beneath PMLA, 2002, out of which, belongings price Rs 15,113 crore have been restituted to the general public sector banks, he stated.

Banks themselves write off NPAs as a part of their common train to scrub up their steadiness sheet, avail tax profit and optimise capital, in accordance with RBI tips and coverage permitted by their boards, he stated.

Replying to a different query, Karad stated Scheduled Commercial Banks have recovered an mixture quantity of Rs 6,59,596 crore, together with the restoration of Rs 1,32,036 crore from written-off mortgage accounts over the last 5 monetary years as per the RBI knowledge.

In reply to a different query, he stated, the whole quantity of recapitalisation by the federal government in banks throughout final 5 monetary years is Rs 2,90,600 crore, together with recapitalisation of Rs 4,557 crore in IDBI Bank Ltd, which has been categorised as personal sector financial institution by RBI on January 21, 2019.

In the monetary 12 months 2021-22 and first half of the monetary 12 months 2022-23, he stated, PSBs have reported mixture web revenue of Rs 66,543 crore and Rs 40,992 crore respectively.

NEW DELHI: Banks have written off Rs 11.17 lakh crore dangerous loans from their books within the final six years until monetary 12 months 2021-22, Parliament was knowledgeable on Tuesday.

The non-performing belongings (NPAs), together with these in respect of which full provisioning has been made on completion of 4 years, are faraway from the steadiness sheet of the financial institution involved by means of write-off, Minister of State for Finance Bhagwat Karad stated in a written reply.

Banks write off NPAs as a part of their common train to scrub up their steadiness sheet, avail tax profit and optimise capital, he stated, including, the write-off is carried out by the banks in accordance with RBI tips and coverage permitted by their boards.

“As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years,” he stated.

With regard to the record, together with names of write-offs/defaulters who’ve defaulted greater than Rs 1 crore to the general public sector banks, RBI has knowledgeable that borrower-wise info on written off mortgage accounts just isn’t maintained by it, he stated.

In reply to a different query, Karad stated, the Reserve Bank of India (RBI) has knowledgeable that the whole variety of wilful defaulters every having excellent mortgage of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017 and 12,439 as on June 30, 2022; whereas in personal sector financial institution, it was 1,616 as on June 30, 2017 and a couple of,447 as on June 30, 2022.

He additional stated, “RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively.”

The record of suit-filed wilful defaulters of Rs 25 lakh and above is out there within the public area on the web sites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are usually not in public area.

The Enforcement Directorate (ED) has knowledgeable that 515 fraud circumstances, together with circumstances associated to wilful defaulters, have been recorded since May 1, 2017 beneath the provisions of Prevention of Money Laundering Act (PMLA), 2002.

As on December 15, 2022, he stated, in these circumstances, belongings price Rs 44,992 crore (approx.) have been connected and 39 prosecution complaints have been filed by the Directorate.

Further, as on December 15, 2022, belongings price Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been connected since May 2017 by the ED beneath PMLA, 2002, out of which, belongings price Rs 15,113 crore have been restituted to the general public sector banks, he stated.

Banks themselves write off NPAs as a part of their common train to scrub up their steadiness sheet, avail tax profit and optimise capital, in accordance with RBI tips and coverage permitted by their boards, he stated.

Replying to a different query, Karad stated Scheduled Commercial Banks have recovered an mixture quantity of Rs 6,59,596 crore, together with the restoration of Rs 1,32,036 crore from written-off mortgage accounts over the last 5 monetary years as per the RBI knowledge.

In reply to a different query, he stated, the whole quantity of recapitalisation by the federal government in banks throughout final 5 monetary years is Rs 2,90,600 crore, together with recapitalisation of Rs 4,557 crore in IDBI Bank Ltd, which has been categorised as personal sector financial institution by RBI on January 21, 2019.

In the monetary 12 months 2021-22 and first half of the monetary 12 months 2022-23, he stated, PSBs have reported mixture web revenue of Rs 66,543 crore and Rs 40,992 crore respectively.