Over 2,100 Wilful Defaulters Owe Rs1.76 Lakh Crore to PSBs as of June 2025: Govt
Moneylife Digital Team 12 August 2025
Public sector banks (PSBs) are grappling with loans worth Rs1.76 lakh crore owed by more than 2,100 wilful defaulters as of 30 June 2025, while during the past five years, PSBs have written off over Rs10 lakh crore in loans across categories, government data presented in the Lok Sabha has revealed. However, the government did not provide names of the wilful defaulters, stating that information regarding non-performing assets (NPAs) written off in respect of category ‘corporate’ is not maintained by the Reserve Bank of India (RBI). 
 
In a written reply, minister of state for finance Pankaj Chaudhary informed Parliament that 2,104 domestic borrowers, classified as wilful defaulters under norms of Reserve Bank of India (RBI), had an aggregate outstanding of Rs176,693 crore with PSBs. The number has declined from 2,280 wilful defaulters owing Rs205,461 crore as of 31 March 2022.
 
The minister clarified that this list excludes overseas borrowers and stressed that banks continue to pursue recovery action against all such accounts. Recovery measures include proceedings before debt recovery tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, and insolvency proceedings before the national company law tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
 
The reply also showed that in the past five years, PSBs have written off over Rs10 lakh crore in loans across categories such as agriculture, MSMEs, large industries, services, and retail. However, the government emphasised that write-offs are an accounting exercise after full provisioning for non-performing assets (NPAs) and 'do not result in waiver of liabilities of borrowers'. Borrowers remain liable to repay and banks continue recovery proceedings, it says.
 
 
State Bank of India (SBI) topped the list of loan write-offs among PSBs in the past five financial years, with over Rs18,000 crore written off in FY20-21, Rs18,500 crore in FY21-22, Rs23,600 crore in FY22-23, Rs10,600 crore in FY23-24, and Rs16,000 crore (provisional) in FY24-25.
 
 
Despite the large sums written off, the gross NPA ratio of PSBs has been steadily falling—from Rs6.16 lakh crore (9.11% of advances) as of 31 March 2021, to Rs2.83 lakh crore (2.58%) as of 31 March 2025. The government attributed this improvement to structural reforms, including the implementation of the IBC, amendments to recovery laws, enhanced powers for DRTs and the establishment of dedicated stressed asset management units in PSBs.
 
Mr Chaudhary reiterated that the government and RBI have taken 'comprehensive measures' to strengthen the banking system’s ability to resolve stressed assets and hold wilful defaulters accountable.
 
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Comments
parimalshah1
4 months ago
Golmaal hai bhai sab golmaal hai.
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