₹1.74 lakh cr loans paid off by SCBs in FY 2021-22: Govt informs RS

The minister while replying to a query raised by CPI(M) John Brittas, also stated that ₹33,534 crore were recovered from written-off loans in the last financial year

Updated on: Dec 14, 2022, 10:21:55 IST

By Saptarshi Das

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Loans worth ₹1.74 lakh crore were paid off by scheduled commercial banks (SCBs) in the last financial year of 2021-22, union MoS for finance Bhagwat Karad disclosed to the Rajya Sabha on Tuesday.

Union MoS for finance Bhagwat Karad attested the RBI did not maintain record on number of accounts written off. (PTI file image)

The minister while replying to a query raised by CPI(M) John Brittas, also stated that ₹33,534 crore were recovered from written-off loans in the last financial year.

MoS Karad in his written reply to the Rajya Sabha noted, “According to Reserve Bank of India (RBI), the amount of loans written off by scheduled commercial banks in the last five financial years was ₹1,61,328 crore in 2017-18; ₹2,36,265 crore in 2018-19, ₹2,34,170 crore in 2019-20; ₹2,02,781 crore in 2020-21 and ₹1,74,966 crore in 2021-22.”

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Karad’s reply to Brittas’s question further added, “The recovery in written-off loans over the last five financial years was ₹12,881 crore in 2017-18; ₹25,501 crore in 2018-19; ₹30,016 crore in 2019-20; ₹30,104 crore in 2020-21 and ₹33, 534 crore in 2021-2, according to the RBI.”

While notifying the same, Karad attested that the ‘RBI did not maintain record on the number of accounts written off and that the provision of Section 45E of the RBI Act 1934, the central bank is prohibited from disclosing borrower-wise credit information.

These clarifications by MoS finance Karad came in the backdrop of CPI(M) Brittas’s query wherein the latter had sought the details of the loans written off by scheduled and commercial banks and the defaulted amount recovered from the written-off loans over the last five years.

Brittas had also urged the ministry to disclose the name and details of the bank accounts in which loans above ₹10 crore were written off along with the names of the top 25 loan defaulters in the public sector banks.

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