New Delhi, July 23 -- Public sector banks (PSBs) have written off over Rs.12 lakh crore worth of loans since 2015-16, even as they saw their gross non-performing asset (NPA) ratio plunged from 9.11% on March 31, 2021 to 2.58% on March 31, 2025, Union minister of state for finance Pankaj Chaudhary informed told Rajya Sabha on Tuesday.

The minister, however, clarified that these loans are written off from their respective balance sheets but banks' recovery processes from defaulters continue unabated. "Such write-off does not result in waiver of liabilities of borrowers and therefore, it does not benefit the borrower. The borrowers continue to be liable for repayment and banks continue to pursue recovery actions initiated in these accounts,...