RBI action report..! 10 lakh crore in 5 years..!?

In the last 5 years, indian banks have written off about 10 lakh crore rupees worth of loans. It is shocking information that only 13 percent of this 10 lakh crore rupees loan has been collected. Public sector banks have registered a profit of 25,685 crore rupees in the current financial year, a growth of about 50 percent,. Finance minister Nirmala Sitharaman in a tweet about the achievement recorded in the profitability measurement of public sector banks attributed the increase in the profitability of the public sector banks to the continuous efforts of the government to reduce the non-performing assets (NPA) of the banks. The reserve bank of india has responded to a query under the Freedom of Information Act stating that there is a write-off of loans worth crores of rupees.The fiscal deficit for the financial year 2022-23 is 16.61 lakh crore rupees, if this 10 lakh crore bad debt amount is fully recovered, about 61 percent of the fiscal deficit can be solved. 7,29,388 crores in the last financial year which decreased by 5.9 percent. Only Rs 1,31,036 crore has been collected out of Rs 10 lakh crore bad debt deferred in the last 5 years. If the banks are unable to collect a loan and declare its bad debt, they will try to collect the loan for some time and if the efforts fail, then the loan will be written off. In case of a loan deferment, this particular loan will be removed from the bank's books of account. In such a case, the bank's weekly loan amount will not only be reduced but also the tax on the deferred loan will be saved. After the loan is deferred, the tax can be deducted from the bank's profit before tax. There are opportunities to improve the financial condition of banks.It is usually because a loan is uncollectible that the decision is made to remove the loan from the bank's books. In this situation, instead of abandoning this debt altogether, a special committee will be set up to collect the debt and will continue to make efforts to collect it. If a loan is not paid in installments for 3 months, it becomes a bad loan.
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RBI report

Sowmiya Sriram

21/11/2022 04:40 PM