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Banks write off loans worth Rs 9.75 lakh cr in last 11 years

Analysis of this story by et_companies · 16 Mar 2026, 6:48 PM IST (about 2 months ago)

BULLISH(90%)
hold
+44banking

AI Analysis

Loan write-offs are a key indicator of asset quality for banks. A declining trend suggests a healthier balance sheet and reduced future provisioning needs.

Trading Insight

Consider long positions in well-managed public and private sector banks, as improving asset quality can lead to better earnings visibility.
Quick check: HDFCBANK neutral (oversold), ICICIBANK neutral (oversold).

Key Evidence

  • Banks wrote off Rs 9.75 lakh crore in loans over the last 11 years.
  • Write-offs peaked in FY20 at Rs 1.59 lakh crore.
  • Write-offs have been declining since FY20, reaching Rs 47,568 crore in FY25.
  • Specific write-off figures for FY15, FY16, FY17, and FY18 were provided.
  • Risk flag: Potential for new NPA cycles if economic conditions worsen
Sectors:banking

Sources and updates

Original source: et_companies
Published: 16 Mar 2026, 6:48 PM IST
Last updated on Anadi News: 16 Mar 2026, 7:37 PM IST

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Banks write off loans worth Rs 9.75 lakh cr in last 11 years | Anadi Algo News