Waiver of Loans to Industrialists

By | November 22, 2016
(Last Updated On: November 22, 2016)

The details of industrialists against whom a debt exceeding Rs.50 crore remains pending alongwith debt amount is as under:

NPA accounts above Rs.50 crore for PSBs as on June 30, 2016
No. of NPA AccountsAmount (Rs. in Crore)
2071  3,88,919

 Source: PSBs 

In terms of instructions of Reserve Bank of India (RBI), every bank has to have its own recovery policy including the manner and procedure of write-offs. Loans are written off after appropriate provisions have been made to take advantage of tax benefits and capital optimization. In respect of technical write-offs, RBI has permitted write-offs at Head Office level while recovery efforts are still continued at branch level.

Disclosure of write-offs is mandatory to be published in the balance sheet of the banks as per RBI master circular on Disclosure in Financial Statements – ‘Notes to Accounts’ dated July 1, 2015.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

Ministry of Finance 22-November, 2016

Category: News

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

Leave a Reply

Your email address will not be published.