The Reserve Bank said that in the financial year 2020-21, public sector banks did bad loan write-offs of 1.32 lakh crore. On the other hand, Anurag Thakur had said in the House in writing that a low write-off of 1.15 lakh crore was done in only three quarters of the last financial year.
There was a decline of Rs 1.32 lakh crore in NPAs in the last financial year.
Bank privatisation: Amidst the news of privatization of banks, a good news has come for the public sector banks. There has been a decline of Rs 1.32 lakh crore in the NPAs of public sector banks in the financial year 2020-21. The Reserve Bank of India has given this answer to the question asked in RTI. Sanjay Thul from Nagpur had sought information from the RBI under the RTI Act regarding the write-off of NPAs and bad loans in public sector banks (PSBs) in the last 10 years.
RBI said in response to RTI, “Due to write-off of bad loans of public sector banks, the reduction in NPA was Rs 1 lakh 31 thousand 894 crore. According to RBI, this figure was Rs 1 lakh 75 thousand 877 crore in the financial year 2019-20. Here the Modi government has set a target of disinvestment and privatization at Rs 1.75 lakh crore for the current financial year (2021-22). Decision has been taken on privatization of two banks. NITI Aayog has selected Central Bank of India and Indian Overseas Bank for disinvestment.
Very soon and many banks will be privatized
The Finance Secretary has also made it clear last week that more public sector banks will be privatized in the coming days. The government will keep minimum presence in this sector. Speaking at an event, Finance Secretary TV Somanathan said that privatization of some more public banks is set in the coming days.
Loan write-off to clean the balance sheet
Loan write-off is the process of cleaning the balance sheet. When a bank feels that it cannot recover a particular loan, it writes off it. Its account is removed from the balance sheet and the paper account of the bank is corrected. According to a report by Financial Express, the total write off of banks in the financial year 2020-21 was Rs 1.85 lakh crore, while in the financial year 2019-20 it was Rs 2 lakh 37 thousand 876 crore.
1.85 lakh crore loan written off in the financial year 2020-21
Former Minister of State for Finance Anurag Singh Thakur had said in a written reply in the Lok Sabha that in the first three quarters of the financial year 2020-21, public sector banks have written off loans worth Rs 1.15 lakh crore. According to the SCB report, the write off figure for the March quarter was Rs 70 thousand crore. In this way a loan of Rs 1.85 lakh crore was written off in the entire financial year.
Also read, Now it is easier to get LPG gas connection, get a new cylinder based on your family connection
Also read, Free Gift Voucher of 10 thousand rupees is being available from Amazon, just have to do this work, till 22 July there is a chance