Banks Write Off Rs 9.75 Lakh Crore in Loans Over 11 Years, Recovery Efforts Continue

Banks in India have written off loans totaling Rs 9.75 lakh crore over the past 11 financial years, with the highest write-off of Rs 1.59 lakh crore occurring in FY20. Since then, write-offs have declined to Rs 47,568 crore in FY25. According to Minister of State for Finance Pankaj Chaudhary, these write-offs follow RBI guidelines and do not absolve borrowers of repayment obligations. Banks continue recovery efforts on these accounts through various mechanisms.