PSB loan write-offs: ₹12.08 lakh crore over 10 years

What Parliament data is being shared online

Social media posts are circulating a Finance Ministry disclosure to Parliament. The date repeatedly cited is July 22, 2025, in the Rajya Sabha. The number driving the discussion is an aggregate ₹12,08,828 crore. Posts frame this as public sector bank loan write-offs over a decade. Many users label the figure as “bad loans” or NPAs. Others highlight that write-offs are linked to accounts overdue beyond 90 days. The debate has expanded because screenshots of bank-wise tables are widely shared. Most posts treat the dataset as PSB-only, not the full banking system.

The key numbers: decade total vs last five years

The decade total cited for PSBs is ₹12,08,828 crore. The timeline attached to that figure is FY2015-16 through FY2024-25. A second headline number is ₹5.82 lakh crore for FY2020-21 to FY2024-25. Online commentary stresses that this five-year block is a large share of the decade. It is also where most bank-wise comparisons are being made. Several users interpret the concentration as a “cleanup” phase in PSBs. Others treat it as evidence of weak credit discipline over time. The same posts frequently ask why recoveries do not match the written-off amounts.

Year-wise signals: FY21 spike and recent decline

One widely repeated single-year peak is ₹1.33 lakh crore in FY2020-21. Posts present that spike as part of balance-sheet cleanup efforts. The trend described in recent years is downward, based on shared comparisons. A specific comparison doing the rounds is FY2024-25 write-offs of ₹91,260 crore. The same posts claim FY2023-24 write-offs were higher at ₹1.15 lakh crore. Users cite this as evidence that write-offs have eased after the earlier surge. Another frequently repeated claim is that 10 of 12 PSBs saw declines over five years. Some posts add that SBI and Canara Bank increased in FY25, even as the broader trend cooled.

Bank-wise debate: SBI, Union Bank, PNB lead

Bank-wise leaderboards are central to why this topic is trending. The most cited cumulative five-year figure is SBI at ₹1.14 lakh crore. Union Bank is often shown next at ₹85,540 crore, followed by PNB at ₹81,243 crore. Bank of Baroda is cited at ₹70,061 crore, and Canara Bank at ₹56,491 crore. Posts also circulate FY25-only write-offs for some banks, especially the top names. SBI is cited at ₹20,309 crore in FY25, with PNB and Union Bank at ₹12,159 crore and ₹11,634 crore. Canara Bank’s FY25 number is also shared in some tables at ₹14,350 crore.

Recoveries: the ₹1.65 lakh crore point

A separate figure repeatedly quoted is PSB recoveries of ₹1.65 lakh crore. Posts link this recovery number to the same five-year period as the ₹5.82 lakh crore write-offs. Many users compute that as roughly a 28% recovery on written-off amounts. The figure is often used to argue that recoveries lag write-offs materially. Some commentary goes further and claims recovery outcomes are “poor,” without adding bank-wise detail. The recovery number is also used to question whether write-offs mainly help large borrowers. At the same time, posts acknowledge that banks continue pursuing recoveries after a write-off. The tension online is between an accounting action and real cash recovery achieved later.

Write-off vs waiver: what the government clarified

The government’s response, as quoted in posts, stresses that write-offs are not waivers. The Finance Ministry is cited saying a write-off is a technical accounting procedure. Posts say the clarification includes that borrower liabilities are not extinguished. The explanation repeated online is that write-offs are aligned with RBI guidelines. Specifically, NPAs with full provisioning are typically written off after four years. Users also share the recovery routes listed in the reply. These include civil courts, Debt Recovery Tribunals, SARFAESI actions, and IBC proceedings. Other cited methods include negotiated settlement or compromise and sale of NPAs. This clarification is often contrasted with the public perception that “write-off” equals forgiveness.

Why totals differ across posts: PSBs vs commercial banks

One reason the discussion gets messy is mixed definitions and timelines. Several posts cite a “commercial banks” figure of about ₹12.3 lakh crore for FY2015 to FY2024. That is not identical to the PSB-only decade figure, and the periods differ. Some users quote “half of write-offs” being by PSBs in the last five years, but then attach banking-system totals. Other posts cite Reserve Bank of India data about PSB write-offs over the last five years plus the current fiscal up to September 30, 2025. Because the time windows and bank groups differ, totals can look similar but not match. The same confusion shows up when users mix “corporate loans” language with overall NPA write-offs. One Parliament-linked excerpt circulating online also notes RBI does not maintain corporate-loan write-off data specifically. This mix-and-match is a key reason the topic keeps resurfacing in threads.

What investors are watching next in PSU banks

For markets, the immediate question is whether write-offs keep trending lower. Posts already point to FY2024-25 being below FY2023-24 in the cited comparison. Another focus is whether recoveries improve against the written-off stock. The ₹1.65 lakh crore recovery number is becoming a shorthand benchmark in discussions. Investors are also scanning bank-wise patterns, because leaderboards can influence sentiment. SBI’s five-year cumulative figure and its FY25 number are repeatedly highlighted. Canara Bank is also mentioned because some posts claim it rose in FY25. Separately, the debate reinforces that “write-off” affects reported balance-sheet optics, not borrower liability. The next leg of conversation is likely to track fresh write-off disclosures and any recovery updates reported through official channels.