Indian banks write off over Rs 10 lakh crore in loans in five years

This post was originally published on this site

This disclosure comes against the backdrop of the Reserve Bank of India’s (RBI) guidelines, which direct banks to remove non-performing assets (NPAs) from their balance sheets after sufficient provisioning has been made. These write-offs are not financed by government funds. As of March end in 2023, the Central Repository of Information on Large Credits (CRILC) recorded 2,623 wilful defaulters owing debts exceeding Rs 1.96 lakh crore.

The Indian banking sector has been employing various measures to recover these debts. The Insolvency and Bankruptcy Code (IBC) and proceedings at the National Company Law Tribunal (NCLT) under the Securitisation Act are key legal instruments supporting these recovery efforts. Additionally, the RBI’s Framework for Compromise Settlements, introduced on June 8th, provides a mechanism for reaching settlements with wilful defaulters while ensuring that criminal prosecutions are not affected.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.