SBI has written off `203.09 billion worth of loans in FY25, the highest among all 12 PSBs

Agencies New Delhi

State-owned banks have written off loans worth INR 12.09 trillion between 2015-16 (Apr-Mar) and FY25, Minister of State for Finance Pankaj Chaudhary said in a written response to a question in the Rajya Sabha Tuesday. Across the 12 banks, the total loan write-offs fell to INR 911.61 billion in FY25, their lowest level in at least five years, according to the latest provisional data of the Reserve Bank of India cited by the minister.

"Such write-off does not result in waiver of liabilities of borrowers and therefore, it does not benefit the borrower," Chaudhary said. "The borrowers continue to be liable for repayment and banks continue to pursue recovery actions initiated in these accounts."

The country's largest lender, State Bank of India, wrote off INR 203.09 billion worth of loans in FY25, the highest among all 12 public sector banks, provisional data showed.  These recovery actions include civil suits, claims in debt recovery tribunals and those under the Insolvency and Bankruptcy Code. Banks write off non-performing assets in line with Reserve Bank of India guidelines and policy approved by their board, the minister said. 

Gross NPAs decline to `2.83L cr in March 2025

According to statistics released by the Ministry of Finance on Tuesday, gross NPAs of public sector banks have been declining during the last five financial years. The NPAs have reduced from 9.11% to 2.58% from March 2021 to March 2025. Gross NPAs stood lower at Rs 2.83 lakh crore in March 2025 as against Rs 6.61 lakh crore in March 2021.

Comprehensive measures have been taken by the Government and the RBI to recover and reduce NPAs. Change in credit culture has been effected, with the Insolvency and Bankruptcy Code fundamentally changing the creditor-borrower relationship, taking away control of the defaulting company from promoters/owners, and debarring wilful defaulters from the resolution process.