Loan Write-Offs by Banks:
A large-scale loan write-off by banks over the past few years has contributed to a significant reduction in non-performing assets (NPAs).As a result, banks have achieved a 12-year low NPA ratio of 2.8% of advances by March 2024.Between FY2015 and FY2024, Indian commercial banks wrote off loans amounting to Rs 12.3 lakh crore, with Rs 9.9 lakh crore in the last 5 years alone (FY 2020-2024).The peak in loan write-offs occurred in FY2019 at Rs 2.4 lakh crore, following an asset quality review initiated in 2015.
