New Delhi: Public sector banks (PSBs) have written off loans totaling Rs 6.15 lakh crore over the last five and a half years, Parliament was informed on Monday.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary cited Reserve Bank of India (RBI) data stating that PSBs have written off Rs 6,15,647 crore during the last five financial years and the current financial year up to September 30, 2025 (provisional).
No Government Capital Infusion Since FY2022-23
The minister highlighted that PSBs have not received any government capital infusion since FY2022-23, yet they have strengthened their financial performance, turned profitable, and bolstered their capital positions.
To meet capital requirements, PSBs have raised Rs 1.79 lakh crore from market sources through equity and bonds since April 1, 2022, till September 30, 2025.
Write-Offs Do Not Waive Borrowers’ Liabilities
Chaudhary clarified that write-offs are carried out according to RBI guidelines and board-approved policies once full provisioning has been made over four years.
“Write-offs do not waive borrowers’ liabilities. Recovery continues through civil courts, Debts Recovery Tribunals (DRT), SARFAESI Act mechanisms, and the National Company Law Tribunal (NCLT),” he said.
Banks consider write-offs as part of balance-sheet cleanup, tax benefits, capital optimization, enhanced lending capacity, and boosting investor confidence.
Export Finance and Fraud Statistics
The minister also shared that PSBs, SIDBI, and Exim Bank disbursed a total of Rs 21.71 lakh crore in export credit over the last five years (FY 20-21 to FY 24-25).
On frauds, Chaudhary said 5,83,291 cases were registered in the last four and a half years up to September 2025, amounting to Rs 3,588.22 crore, of which Rs 238.83 crore have been recovered.
He noted that the rise in digital payment transactions has led to an increase in cyber and digital payment frauds in recent years.
