PSBs Write Off Rs 6.15 Lakh Crore Over Five Years as Market Funding Replaces Recaps

Overview

• In a Dec. 8 written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary cited RBI data showing Rs 6,15,647 crore written off by public sector banks from FY2020 through Sept. 30, 2025.
• Public sector banks have received no government capital since FY2022-23 and have raised Rs 1.79 lakh crore from markets via equity and bonds since April 1, 2022.
• Banks typically remove fully provisioned non-performing assets after four years under RBI-approved policies, and the write-off entry involves no cash outflow.
• Recovery of written-off exposures remains active through civil courts, Debts Recovery Tribunals, SARFAESI measures, and insolvency proceedings before the NCLT.
• The ministry also reported 5,83,291 fraud cases over roughly four-and-a-half years totaling Rs 3,588.22 crore, with Rs 238.83 crore recovered, as digital payment frauds increase.