Finance Ministry told banks to speed up recovery from written-off accounts and NPA accounts.
Expressing concern over the low rate of recovery from written-off accounts, the government issued instructions to the banks.
Public sector banks have been able to recover only 14% of the amount from written-off accounts in the last 5 years.
Let us tell you that during the last 5 years, a total of Rs 7.34 lakh crore was written off, which is a huge amount.
The Finance Ministry directed public sector banks to increase the recovery rate from written-off accounts to 40%.
According to the report, PSBs recovered Rs 1.03 lakh crore by the end of March 2022. Net write-off stood at Rs 6.31 lakh crore.
Regarding Non-Performing Assets (NPA), the Finance Ministry said that this level of recovery is not acceptable.
According to the statistics of the last six years, PSU banks have written off Rs 11.17 lakh crore as bad loans.
According to RBI data, PSBs, and the private sector wrote off Rs 8,16,421 crore and Rs 3,01,462 crore respectively during the year.