News > Banks wrote off ₹1.15 lakh cr. in nine months of FY21: Thakur

Banks wrote off ₹1.15 lakh cr. in nine months of FY21: Thakur

Banks evaluate the impact of write-offs as part of their regular exercise to clean up their balance-sheet, avail tax benefit, and optimize capital in accordance with RBI guidelines and policy approved by their boards, he said.

However, Mr. Thakur said, as borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, writing off does not benefit the borrower.