Solution

Banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years starting 2014-15.Out of the total Rs 14,56,226 crore, written-off loans of large industries and services stood at Rs 7,40,968 crore.  Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs 2,04,668 crore in written-off loans, including corporate loans, since April 2014 and up to March 2023. Loans written-off during the financial year, net of recovery in written-off loans during the financial year (net write-off) in public sector banks (PSBs) was Rs 1.18 lakh crore in the financial year (FY) 2017-18, which has declined to 0.91 lakh crore in FY 2021-22 and to Rs 0.84 lakh crore (RBI provisional data) in FY 2022-23.  Net write-off loans by private sector banks stood at Rs 73,803 crore (RBI provisional data) in FY 2022-23.   Net write-off as a percentage of opening gross loans and advances in private sector banks was 1.25 per cent and 1.57 percent in FY 2017-18 and FY 2022-23 respectively, and it was 2 percent and 1.12 per cent for PSBs during the same period.