Rs 6,15,647 crore written off by PSBs in last 5 years: Finance ministry

The public sector banks have written off Rs 6,15,647 crore in the last five years, according to the finance ministry in Parliament on Monday.

The minister of state for finance Pankaj Chaudhary was responding to Trinamul Congress MP Md Abu Taher Khan’s question on the amount of bad loans written off by public banks during the last five years and the impact on liquidity of public banks on writing off bad loans.

Advertisement

The MP also asked the ministry if the government intends to infuse capital in public banks.

The junior minister of finance also informed through his response that there has been no capital infusion in Public Sector Banks (PSBs) by the government since FY 2022-23. “PSBs have significantly improved their financial performance, turning profitable and strengthening their capital position. PSBs now rely on market sources and internal accruals to meet their capital requirements. PSBs have raised 1.79 lakh crore capital from market through equity and bonds since 1.4.2022 till 30.9.2025,” the reply stated.

“As per Reserve Bank of India (RBI) data, PSBs have written-off an aggregate loan amount of 6,15,647 crore, during the last five financial years and the current financial year till 30.9.2025 (provisional data),” the reply mentioned.

The reply also mentioned that such write-off does not result in waiver of liabilities of borrowers to repay.