Waiver of Loans to Industrialists

Waiver -Indian Bureaucracy
Waiver -Indian Bureaucracy

The details of industrialists against whom a debt exceeding Rs.50 crore remains pending along with debt amount is as under:

NPA accounts above Rs.50 crore for PSBs as on June 30, 2016
No. of NPA Accounts Amount (Rs. in Crore)
2071   3,88,919

Source: PSBs

In terms of instructions of Reserve Bank of India (RBI), every bank has to have its own recovery policy including the manner and procedure of write-offs. Loans are written off after appropriate provisions have been made to take advantage of tax benefits and capital optimization. In respect of technical write-offs, RBI has permitted write-offs at Head Office level while recovery efforts are still continued at branch level.

Disclosure of write-offs is mandatory to be published in the balance sheet of the banks as per RBI master circular on Disclosure in Financial Statements – ‘Notes to Accounts’ dated July 1, 2015.

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