PSU Banks Write Off ₹6.15 Lakh Cr Loans in 5.5 Years

• Public sector banks (PSBs) wrote off Rs 6.15 lakh crore in loans over the last 5.5 years, according to RBI data.
• This amount covers the period from the last five financial years up to September 30, 2025 (provisional).
• Loan write-offs do not waive borrower liabilities; banks continue recovery actions through various legal mechanisms.
• Since FY2022-23, the government has not infused capital into PSBs; they now rely on market sources and internal accruals.
• PSBs have raised Rs 1.79 lakh crore from the market via equity and bonds since April 1, 2022.

Why It Matters: Public banks' massive loan write-offs affect national financial health.