 "IDBI, SBI group report higher write-offs than recoveries in FY14")
Two public sector lenders — IDBI Bank and State Bank of India (SBI) group — wrote off more loans than what they recovered from borrowers in financial year 2013-14, according to finance ministry data.
Public sector bank (PSB) executives said the write-off indicates cancellation from an account of a bad debt or worthless asset. The provisions are made for such accounts in line with regulatory norms.
The overall performance of PSBs on recoveries was better in 2013-14. PSBs as a group recovered Rs 34,306 crore in FY14 while cancelling loans worth Rs 25,310 crore from books. The recoveries were higher by Rs 8,995 crore over write-offs.
For IDBI Bank, a Mumbai-based public sector lender, total cash recoveries from non-performing loans and written-off accounts stood at Rs 896 crore. It wrote off loans worth Rs 1,392 crore in FY14.
SBI group wrote off loans worth Rs 8,971 crore in 2013-14, while total recoveries (cash and from written-off accounts) stood at Rs 8,317 crore in the same period. The write-offs were higher by Rs 654 crore than recoveries in the case of the country’s largest commercial banking group.
“The write-off does not absolve borrower from paying dues. Obligation to repay remains intact. The banking group will use all legal means to recover," an SBI executive said.
Public sector bank (PSB) executives said the write-off indicates cancellation from an account of a bad debt or worthless asset. The provisions are made for such accounts in line with regulatory norms.
The overall performance of PSBs on recoveries was better in 2013-14. PSBs as a group recovered Rs 34,306 crore in FY14 while cancelling loans worth Rs 25,310 crore from books. The recoveries were higher by Rs 8,995 crore over write-offs.
For IDBI Bank, a Mumbai-based public sector lender, total cash recoveries from non-performing loans and written-off accounts stood at Rs 896 crore. It wrote off loans worth Rs 1,392 crore in FY14.
SBI group wrote off loans worth Rs 8,971 crore in 2013-14, while total recoveries (cash and from written-off accounts) stood at Rs 8,317 crore in the same period. The write-offs were higher by Rs 654 crore than recoveries in the case of the country’s largest commercial banking group.
“The write-off does not absolve borrower from paying dues. Obligation to repay remains intact. The banking group will use all legal means to recover," an SBI executive said.
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