Indian Public Sector Banks Write Off Rs 6.15 Lakh Crore in Loans: Recovery Challenges and Financial Strategies

Dec 08, 2025 06:44 pm CST

Public sector banks in India have written off loans worth Rs 6.15 lakh crore over five financial years through September 2025, according to Reserve Bank of India data. Despite recovering only Rs 1.65 lakh crore from these write-offs, the government has not injected capital since FY 2022-23 as banks raise market funding and show improved profitability. Finance Minister Pankaj Chaudhary clarified that write-offs don't constitute loan waivers and recovery efforts continue through various legal mechanisms.