Banks have written off bad loans worth Rs 10.8 lakh crore in last eight years
Banks have been facing the problem of bad loans for a while now. Bad loans are largely loans which haven’t been repaid for a period of 90 days or more.
The bad loans of Indian banks peaked at Rs 10.36 lakh crore as of March 2018. They have come down since then. In a recent answer to a question raised in the Lok Sabha, the government said bad loans as of March 2021 had fallen to around Rs 8.35 lakh crore. Given this, bad loans have fallen by a little over Rs 2 lakh crore between March 2018 and March 2021.
While this sounds like a decent fall, it does not consider the fact that loans worth lakhs of crores have been written off by banks over the years….