MUMBAI : Several large and mid-sized banks aggressively wrote off large chunks of legacy bad loans in the March quarter as they sought to bring down their non-performing assets (NPA), a Mint analysis of quarterly results showed. On an aggregate basis, eight large and mid-sized banks wrote off 15% more bad loans in the quarter from a year ago, including both technical as well as regular write-offs. Banks with higher write-offs include Bank of India, Punjab National Bank (PNB), Bank of Baroda (BoB), Axis Bank and IDBI Bank. Among these eight banks, data on recoveries from written-off accounts is available for seven lenders, adding up to ₹6,112 crore. Analysts said the government’s move to extend the repayment deadline for some sovereign-backed loans will delay the recognition of bad loans.

Source: Mint June 06, 2021 19:41 UTC