What happened (write-offs fall while recoveries rise)
Government data shared in Parliament indicates that public sector banks (PSBs) recorded declining bad-loan write-offs alongside rising recoveries.
An analysis based on replies in the Lok Sabha and Rajya Sabha summarised the following write-off trend for PSBs:
- Write-offs increased to about ₹1.3 lakh crore in 2022-23 (the analysis links the rise to the pandemic period), from ₹1.15 lakh crore in 2021-22.
- Write-offs then fell consistently and reached ₹70,528 crore in FY2026.
- The analysis states that ₹70,528 crore in FY2026 is about 40% lower than five years earlier.
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