Rs. 5.52 lakh Crores Of Big Businessmen’s Loans Cancelled!

Bank Loans: Banks in the country are lagging behind in debt collection. Due to this, NPAs are increasing and loans are being written off. The central government itself has announced in the parliament that Rs.10.57 lakh crores have been canceled in the last five years. Out of which Rs.5.52 lakh crores belong to big industries.

Bank Loans: Scheduled commercial banks in the country have written off loans worth about Rs.10.57 lakh crore in the last 5 years. That is, removal from the farms. It is noteworthy that Rs. 5.52 lakh crores are loans related to heavy industries. To this extent, the Central Government informed the Parliament on Tuesday. Minister of State for Finance Bhagwat Karad gave a written reply to a question asked in the Rajya Sabha. Scheduled commercial banks have recovered NPA of Rs 7,15,507 crore of non-performing assets during the last five years, he said. It has been revealed that the value of writeoffs related to frauds in a period of five years is Rs.93,874 crores.

Is it Completely Waived With A Writeoff?

Union Minister Karad said that banks will clear their balance sheets according to their policies, write-offs of loans to get tax benefits and utilize capital appropriately. Such write-offs do not lead to borrowers defaulting on repayments. It has been clarified that the write-off will not bring any benefit to the borrowers. Those who have taken loans have reminded the banks that they have to repay the loans they have taken. Banks will continue to pursue recovery through mechanisms available to them.

Public Sector Banks That Have Written Off Rs.3.66 Lakh Crore In Three Years.

Public sector banks like SBI, PNB, BOB and PSUs have collectively written off Rs.3.66 lakh crore of loans in the last three years. The Reserve Bank of India has responded to this when asked through the Right to Information Act. At the same time, the non-performing assets collected by the banks were Rs.1.9 lakh crore. This means that in the last three years, public sector banks have written off twice as many loans as recovered. The total recovered loans in 2022-23 will be Rs. 67,162. At the same time, the written off loans were Rs.1.31 lakh crore. It is a matter of concern that except for Canara Bank, write-off debt is higher than recovery in other public sector banks. State Bank of India has written off Rs.24,061 crores in these three years. At the same time, it recovered only Rs.13,024 crore.

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