State-run banks write off ₹6.15T loans in 5.5 years: Govt

• India's state-run banks wrote off ₹6.15 trillion in loans between FY2019-20 and September 2025.
• Loan write-offs are done as per RBI norms to remove non-performing assets from bank books after full provisioning.
• The government clarified that write-offs do not equate to waivers, and borrowers remain liable for repayment.
• Write-offs help banks clean balance sheets, optimize capital, and improve investor confidence without cash outflow.
• Public sector banks have not received government capital infusion since FY2022-23 due to improved profitability and have raised ₹1.79 trillion from markets.

Why It Matters: Massive loan write-offs by state banks clarify financial health and recovery efforts.