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

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.

• •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