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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Deep societal faultlines persist despite 75 years of independence: Justice Ujjal Bhuyan
Judge cites denial of home to Muslim girl, opposition to Dalit women cooking mid-day meals
Hyderabad, February 23, 2026: Supreme Court judge Justice Ujjal Bhuyan has said that despite repeated affirmations of constitutional morality by courts, deep societal faultlines rooted in caste and religious discrimination continue to shape everyday realities in India.
Speaking at a seminar on “Constitutional Morality and the Role of District Judiciary” organised by the Telangana Judges Association and the Telangana State Judicial Academy in Hyderabad, Justice Bhuyan reflected on the gap between constitutional ideals and social practices.
He cited a recent instance involving his daughter’s friend, a PhD scholar at a private university in Noida, who was denied accommodation in South Delhi after her surname revealed her Muslim identity. According to Justice Bhuyan, the landlady bluntly informed her that no accommodation was available once her religious background became known.
In another example from Odisha, he referred to resistance by some parents to the government’s mid-day meal programme because the food was prepared by Dalit women employed as cooks. He noted that some parents had objected aggressively and refused to allow their children to consume meals cooked by members of the Scheduled Caste community.
Describing these incidents as “the tip of the iceberg,” Justice Bhuyan said they reveal how far society remains from the benchmark of constitutional morality even 75 years into the Republic. He observed that while the Constitution lays down standards of equality and dignity, the morality practised within homes and communities often diverges sharply from those values.
He emphasised that constitutional morality requires governance through the rule of law rather than the rule of popular opinion. Referring to the evolution of the doctrine through judicial decisions, he cited Naz Foundation v Union of India, in which the Delhi High Court read down Section 377 of the Indian Penal Code, holding that popular morality cannot restrict fundamental rights under Article 21. Though the judgment was later overturned in Suresh Kumar Koushal v Naz Foundation, the Supreme Court ultimately restored and expanded the principle in Navtej Singh Johar v Union of India, affirming that constitutional morality must prevail over majoritarian views.
“In our constitutional scheme, it is the constitutionality of the issue before the court that is relevant, not the dominant or popular view,” he said.
Justice Bhuyan also addressed the functioning of the district judiciary, underlining that trial courts are the first point of contact for most litigants and form the foundation of the justice delivery system. He stressed that due importance must be given to the recording of evidence and adjudication of bail matters.
Highlighting the role of High Courts, he said their supervisory jurisdiction under Article 227 of the Constitution is intended as a shield to correct grave jurisdictional errors, not as a mechanism to substitute the discretion or factual appreciation of trial judges.
He recalled that several distinguished judges, including Justice H R Khanna, Justice A M Ahmadi, and Justice Fathima Beevi, began their careers in the district judiciary.
On representation within the judicial system, Justice Bhuyan noted that Telangana has made significant strides in gender inclusion. Out of a sanctioned strength of 655 judicial officers in the Telangana Judicial Service, 478 are currently serving, of whom 283 are women, exceeding 50 per cent representation. He added that members of Scheduled Castes, Scheduled Tribes, minority communities, and persons with disabilities are also represented in the state’s judiciary.
He observed that greater representation of women, marginalised communities, persons with disabilities, and sexual minorities would help make the judiciary more inclusive and reflective of India’s diversity. “The judiciary must represent all the colours of the rainbow and become a rainbow institution,” he said.
Justice Bhuyan also referred to the recent restoration by the Supreme Court of the requirement of a minimum three years of practice at the Bar for entry-level judicial posts. While acknowledging that the requirement ensures practical exposure, he cautioned that its impact on women aspirants, especially those from rural or small-town backgrounds facing social and financial constraints, would need to be carefully observed over time.
Concluding his address, he reiterated that the justice system must strive to bridge the gap between constitutional ideals and lived realities, ensuring that the rule of law remains paramount.
