PSU bank write-offs hit multi-year lows in FY26 as recoveries surge and slippages fall

Published on 15 May 2026

Write-offs fell lowest in up to eight years

Public sector banks in India recorded loan write-offs at multi-year lows in FY25-26, driven by fewer new problem loans and stronger recoveries from existing stressed assets. PTI analysis of earnings showed most PSUs had write-offs lowest in up to eight years, including Bank of Baroda and Punjab National Bank. The shift also coincided with improved asset quality, with gross and net NPA ratios falling to 1.93% and 0.39% by March 31, 2026, alongside sharply higher recoveries and record profitability.

PSU bank write-offs reached multi-year lows in FY26 across most lenders
Bank of Baroda logged Rs 6,330 crore write-offs, lowest since FY18
Bank of India recorded Rs 5,735 crore write-offs, lowest since FY16
Indian Bank write-offs were Rs 6,695 crore, lowest since FY19
Total recoveries, including from written-off accounts, were Rs 86,971 crore
Gross NPA fell to 1.93% and net NPA to 0.39% as of March 31, 2026

#recoveries #npas #psu banks #fy26 #write offs

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This summarization was done by Beige for a story published on The Economic Times

PSU bank write-offs hit multi-year lows in FY26 as recoveries surge and slippages fall

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