NEW DELHI: Banks have written off bad loans worth Rs 10,09,511 crore in the last five financial years, FM Nirmala Sitharaman informed Parliament on Tuesday. The non-performing assets (NPAs), including those which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-offs, she said in a reply to the Rajya Sabha.
As borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, write-off does not benefit the borrower, she said. Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms.