Daily O

PSU banks writing off Rs 55,356 crore of corporate debt in six months is unacceptable

Though the write-off is financial jugglery to balance the books, this puts the total bad debt written off at a massive Rs 3.60 lakh crore.

A disquieting report on the state of the public sector banks in India acting to further what can only be looked at as "crony capitalism" has come to fore. The Indian Express has reported that PSU banks have written off loans worth Rs 55,356 crore in the last six months alone, a 54 per cent jump in the amount written off around this time last year, which stood at Rs 35,985 crore. The loan write-off is being posited as banks trying to balance their books and clean them up by indulging in a bit of "harmless" financial jugglery.

The report states: "Figures obtained by from the RBI through the Right to Information (RTI) Act for the last decade show that banks had written off Rs 2,28,253 crore in nine years, ICRA said that write-offs amounted to Rs 1,32,659 crore in 2016-17 and the first six months of 2017-18. This means the total write-off in the last 10 years is now over Rs 3,60,000 crore."

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