Write-offs cut PSBs' bad loans in FY18
Public sector banks' (PSB) non-performing assets (NPAs) declined by Rs 1,28,229 crore in FY18 due to write-offs, including compromise settlement. This is about 60 per cent higher than the write-offs in the year-ago period. According to a written reply by Minister of State for Finance Shiv Pratap Shukla to a question in the Rajya Sabha, asset quality review carried out in 2015 for clean and fully-provisioned bank balance sheets reveal a high incidence of NPAs. Expected losses on stressed loans, not provided for earlier under flexibility given to restructured loans, have also been reclassified as NPAs and provided for.