By Dr Brajesh Kumar Tiwari
Last week, Minister of State for Finance Mr Bhagwat Karad said in the Rajya Sabha that in the financial year 2021-22, commercial banks (Scheduled Banks) wrote off a total loan of Rs 1,74,966 crore. In which only Rs 33,534 crore has been recovered from the right-off loan. According to data from the RBI, during the course of the last six fiscal years, scheduled commercial banks (SCBs) wrote off a total of Rs 11,17,883 crore. Over the past five fiscal years, Scheduled Commercial Banks have recovered only Rs 1,32,036 crore from loan accounts that were written off.
State Bank of India alone wrote off loans worth Rs 1.65 lakh crore during the last four financial years. The total number of wilful defaulters each having an outstanding loan of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017, and 12,439 as on June 30, 2022; whereas in private sector banks, it was 1,616 as on June 30, 2017, and 2,447 as on June 30, 2022.
Bank non-performing assets (NPAs) are primarily the result of bad loans and scams. Any country’s banking system is the backbone of its economy. Because the amount deposited in the banks belongs to the citizens of the country, the excessive loss to the banks affects everyone in the country.
The public’s confidence in the banking system is being undermined by a new bank scam that appears in the press every few weeks. There are many bank scams in front of us including DHFL (35,000), ABG Shipyard (23,000…
