# PSB bad loan write-offs drop 40% in five years, recoveries rise 2026-08-12T22:53:23+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets Public sector banks wrote off ₹70,528 crore in bad loans in FY26, down nearly 40% from ₹1.15 lakh crore five years ago, data shared by the Finance Ministry with Parliament shows. Recoveries from written-off loans rose to ₹42,889 crore, lifting the recovery-to-write-off ratio from 21.4% to 60.8% over the same period. Large industries' share of write-offs fell sharply from 90% in FY23 to 29% in FY26, shifting the burden to individuals, MSMEs and farmers. The government stressed that write-offs are accounting entries, not waivers, and recovery proceedings continue. A brokerage report noted the stock of written-off accounts remains large at 6-7% of loan books for most PSBs, implying years to run down. ## Coverage - thehindu.com - businesstoday.in Tags: Bad loans, banking, Ministry of Finance, PSBs, recoveries, write-offs Canonical: https://indianopinion.org/psb-bad-loan-write-offs-fall-40-as-recoveries-surge/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/psb-bad-loan-write-offs-fall-40-as-recoveries-surge/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.