Bank of Baroda writes of their thousand crores of bad loans

by Psu Connect
Date: 07-08-20

New Delhi: India’s second-largest state-owned bank writes off their several bad loans of thousand crores up to Rs21,476.89 crore over eight years. The document procured by Mr. Velankar shows that from 2012 to 2020, BoB technically wrote off 97 accounts with bad debts of Rs100 crore and more.

Mr. Velankar says, “There were a lot of heated arguments in the country a few months ago on written-off loans of big accounts. That time it was clarified by the union finance that technical write off does not mean waiving off loans and efforts are on for recovery of these written-off loans. Since banks, especially public sector banks (PSBs), are not revealing any information about written off loans and recovery, I am asking these questions as a shareholder to bring it in the public domain."

PK Agarwal, the company secretary of BoB states that the information requested related to borrowers. He said, “We regret our inability to share the same with you in terms of our responsibility as a banker to maintain data confidentiality of our borrowers."

Bank of Baroda's states that during the eight years from FY12-13 to FY19-20, it has 'fresh technically written off’ a massive sum of Rs21,476.89 crore from its books, but managed to recover only 5% or Rs1,056.53 crore during this period.

This entire process makes a mockery of the aggressive claims by a string of high-profile government spokesperson and economic advisors that a ‘technical’ write-off does not stop the recovery process, they added.

Bank of Baroda writes of their thousand crores of bad loans

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