PSB Write-Offs: What the Minister Clarified Today, 12th December 2025.

As stated by the Minister of State for Finance, PSBs have written off ₹6.15 lakh crore in loans over the last five years plus till Sept 2025. A write-off is not a waiver, banks still pursue recovery. He also noted that the government hasn’t infused capital into PSBs since FY23. Despite that, PSBs have turned profitable and raised ₹1.79 lakh crore from markets through equity and bonds. Write-offs follow RBI norms (full provisioning after 4 years) and help banks clean balance sheets, optimise capital, and maintain liquidity. Recovery efforts continue via DRT, SARFAESI, NCLT and other channels. Bottom line: As the minister highlighted, write-offs clean the books — they don’t let borrowers escape repayment.