PSU Banks Write Off ₹5.82 Lakh Crore in Loans Over 5 Years

India’s public sector banks have written off approximately ₹5.82 lakh crore in bad loans over the last five financial years, according to Parliament. In FY 2024-25 alone, write-offs stood at around ₹91,260 crore, down from ₹1.15 lakh crore the previous year. Despite this, banks successfully recovered about ₹1.65 lakh crore—roughly 28% of the total written-off amount. Importantly, write-offs are accounting treatments, not debt forgiveness. Borrowers remain liable, and banks continue legal recovery efforts via mechanisms like DRTs, SARFAESI, and IBC. Investor takeaway: High write-offs can signal underlying credit stress—bbut strong recovery mechanisms and prudent provisioning highlight the importance of bank asset quality and regulatory oversight.

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