Indian banks write off Rs 10.6 Lakh Crore, mostly linked to large corporates in 5 Years: Reports
New Delhi: In a disclosure during the winter session, the Union Government on Monday (Dec 04) informed the Lok Sabha, that in the timeline of last five years, Scheduled Commercial Banks (SCB’s) wrote off an estimated Rs 10.6 Lakh crore, with most of the amount linked to large corporate entities, as reported by he Hindu Business Line.
Meanwhile, around 2,300 borrowers, each with loans exceeding Rs 5 crore, intentionally defaulted on around Rs 2 lakh crore, said the government.
According to the Hindu BusinessLine, the write-offs were conducted in accordance with Reserve Bank of India (RBI) guidelines and approved bank board policies, involving the removal of non-performing assets (NPAs) from balance sheets after full provisioning.
The Newspaper quoted the Minister of State in the Finance Ministry Bhagwat Karad as saying in his written response, “Such write-offs do not result in waiver of liabilities of borrowers to repay.” The process of recovery of dues from the borrower in written-off loan accounts continues, write-off does not benefit the borrower, Karad added.
According to the report, the minister did not disclose the names of individual borrowers whose accounts have been written off, citing the RBI Act. However, he mentioned that all SCBs collectively collected an aggregate amount of Rs 5,309.80 crore as penal charges, including penalties for delays in loan repayment, during the financial year 2022-23.
Responding to another question, Karad stated that SCBs and All India Financial Institutions report credit information of borrowers with aggregate exposure of Rs. 5 crore and above to the Central Repository of Information on Large Credits (CRILC). As of March 31, 2023, the CRILC database indicated that 2,623 unique borrowers were classified as wilful defaulters, with an aggregate outstanding amount of over Rs 1.96 lakh crore by SCBs.
Karad clarified that allowing wilful defaulters to enter into compromise settlements serves the primary regulatory objective of providing multiple avenues for lenders to recover defaulted funds without significant delays. He highlighted that inordinate delays in the recovery process can result in asset value deterioration and hinder ultimate recoveries.
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Karnataka: GBA city corporation polls likely between June 14 and 24
Bengaluru (PTI): Karnataka State Election Commissioner G S Sangreshi on Friday said elections to the five city corporations under the GBA will be held anytime between June 14 and June 24.
He said the exact date for the polls will be announced after a week, asserting that the power to postpone the elections, as requested by GBA authorities, lies with the Supreme Court.
The Supreme Court had directed the Karnataka government and the State Election Commission to conduct Bengaluru local body elections by June 30.
On Friday, the SEC held a consultation meeting with the GBA Chief Commissioner and commissioners of the five city corporations regarding the election schedule, as per the provisions of the GBA Act.
“During the meeting, I informed GBA officials that only the election date has to be fixed, as all other measures and formalities for conducting the polls have already been completed,” Sangreshi said.
“They requested the Commission to consider factors such as rains, exams, census work, SIR, and manpower shortages while fixing the date and sought additional time,” he added.
Speaking to reporters after the meeting, he said, “I told them this meeting was not for seeking time. Elections to the five corporations under the GBA must be held before June 30, as directed by the Supreme Court, and a compliance report must be submitted to the court. I do not have the power to postpone the elections as requested.”
The Supreme Court has already given a “final opportunity,” and both the SEC and the government must comply with its directions, the State Election Commissioner said.
He asked GBA officials to suggest suitable dates between June 14 and June 24.
“While stating that they are ready for elections, the officials highlighted operational challenges, including manpower shortages. However, I have informed them that the elections will have to be held between June 14 and June 24. After a week, I will announce the final date,” he said.
Reiterating that he does not have the power to postpone the elections, Sangreshi said the authority rests with the Supreme Court, and elections must be conducted as scheduled.
“We have consulted the GBA as per the rules. It is up to them to suggest a date within the given window. If they need more time, they must approach the court. Our responsibility is to fix the date and complete the polls before June 30,” he said.
The matter regarding manpower and other concerns raised by GBA officials is already before the Supreme Court, and the State Election Commission has also filed a petition in this regard. The case is yet to be heard.
“Since the matter has not come up for hearing, the earlier order remains binding. Therefore, preparations are underway,” he added.
The tenure of the previous elected body under the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) ended on September 10, 2020, and since then, a government-appointed administrator has been managing its day-to-day affairs.
Bengaluru was divided into five municipal corporations—Central, East, West, North, and South—under the Greater Bengaluru Authority in September 2025, replacing the BBMP.
Sangreshi had earlier said that elections to the five corporations would be conducted using ballot papers instead of Electronic Voting Machines.
This follows the Congress government’s decision last September to recommend the use of ballot papers in all future panchayat and urban local body elections, citing concerns over declining public confidence in EVMs.
The state government subsequently enacted the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Act, 2026, paving the way for the use of ballot papers in local body elections.
