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Apr 4, 2018

Public Sector Banks Wrote Off Rs 2.41 Lakh Crore Loan In Three Years

Mamatha Bannerje has questioned credit info secrecy on Public sector banks wrote off Rs 2.41 crore loan in three years as per the latest news.

What Does It Mean To Write Off Bad Debts?

Banks write off bad debt which is declared as non collectable due to defunct busuness, credit card loans. Banks would not have to write off bad debts because their loan portfolios are their future source of income and primary assets. Banks write offs are also known as charge-offs which helps them remove from balance sheets and reduce their liabiality.

Which Financial Statement Shows Bad Debt? 

A credit loss or bad debts expense on its income statement, and. A reduction of accounts receivable on its balance sheet.

Public Sector Banks Wrote Off Rs.2.41 Lakh Crore Loan In 3 Years

Public sector banks wrote off Rs 2.41 crore loan in three years

As per the latest update on DNA website public sector banks have written off Rupees two lakh and forty-one crore worth of loans from April 2014 to September 2017.

Which has been informed to Rajya Sabha on Tuesday

"Consequently, write-offs does not help borrowers," he said.

The minister said RBI has explained it that borrower-wise credit statistics is not accessible for disclosure. 

The RBI Act provides that credit information give in to by a bank should be treated as private and not be published or otherwise disclosed.

"As per Reserve Bank of India (RBI) data on global operations, public sector banks have written-off (including compromise) an amount of Rs 2,41,911 crore from the financial year 2014-15 till September 2017," the minister said. 

Writing off loans is done, inter-alia, for tax benefit and capital optimization, he said.

West Bengal Chief Minister Mamata Banerjee has asked why the Centre is not prepared to disclose particulars of credit information by a public sector bank in Parliament.

Straight in Parliament reply, the Government of India says the details of credit information by a public sector bank cannot be disclosed.

Banerjee tweeted, and She has asked?

"Why is this confidentiality? 

Who is the Government trying to protect?" 

The chief minister commanded immediate disclosure of the entire listing of public listed banks defaulters. "We demand immediate disclosure of the entire listing of defaulters of public quarter banks, whose loans have been written off. Is it not an exquisite scam ???" she asked.

Mamata Banerjee Chief Minister of West Bengal also voiced her shock as the BJP-led central authorities did no longer consider the farmers' enchantment to waive their loans regardless of reviews of suicide through peasants who failed to pay their debts.

I am stunned to see that at a time when the farmers are crying and committing suicide for their loan burden and asking for a waiver of farmers' loan, the Government of India has not even viewed that.

On the contrary, the Government of India has determined to write off Non-Performing Assets of public area banks to the tune of Rs 2,41,911 crore from the Financial Year 2014-15 till September 2017," she stated. 


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