RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
Public Sector Banks have written off around ₹7 lakh crore between 2019-20 and 2024-25 (till September), the Finance Ministry has informed the Rajya Sabha.
- Public Sector Banks (PSBs) are banks in India that are majorly owned by the government and provide financial services to promote economic development.
- The government holds more than 50% of the stake in these banks.
Highlights:
- Public Sector Banks have written off around ₹7 lakh crore between 2019-20 and 2024-25 (till September), the Finance Ministry has informed the Rajya Sabha. The good news is that these banks recovered over ₹5 lakh crore of their Non-Performing Asset (NPAs) during the same period.
- A write-off in banking is an accounting term that recognizes when a borrower’s asset is no longer valuable. It’s usually done when a loan is unlikely to be recovered and is 100% provisioned.
- A non-performing asset (NPA):
- It is a loan or advance that is no longer generating income for the lender because the borrower has not done the payments on time. NPAs are a major concern for banks and financial institutions.
