Thus, NPAs reduce a bank’s available capital to lend fresh loans. So, banks voluntarily choose to write-off NPAs to maintain healthy balance sheets. In FY20, GNPAs written off by PSBs reached a six-year high.
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Unknown titlee The fall in NPAs in FY20 can be largely attributed to loan write-offs. Banks have to set aside (or provision) a part of their profit as a buffer for potential losses that may arise from NPAs. <span>Thus, NPAs reduce a bank’s available capital to lend fresh loans. So, banks voluntarily choose to write-off NPAs to maintain healthy balance sheets. In FY20, GNPAs written off by PSBs reached a six-year high. image/svg+xml Recoveries peak Through various debt recovery channels, ₹1,72,565 crore worth of NPAs was recovered in FY20, the highest in many years. Resolution of some large NPA accoun Summary
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