State-Run Banks Wrote Off Rs 81,000 Crore Loans In Fiscal 2017
According to the Reserve Bank of India (RBI) guidelines and policy approved by bank boards, non-performing loans, including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of banks by writing off.
Mr Jaitley said recovery of dues takes place on an ongoing basis under legal mechanisms. “Therefore, write-off does not benefit borrowers,” Mr Jaitley said.
In another reply, Minister of State for Finance Shiv Pratap Shukla said that in the five financial years since April 1, 2013 as many as 13,643 cases of frauds in banks involving an aggregate amount of Rs 52,717 crore have been reported.
“These include plots of land, flats, shops, jewellery, vehicles, deposits in bank account, fixed deposits. The value of properties under provisional attachment is over Rs 3,800 crore,” he said.