Indian public sector banks wrote off ₹6.15 lakh crore in bad loans from 2020 to Sept 2025, remained profitable, and recovered some funds via legal means.

Indian public sector banks wrote off ₹6.15 lakh crore in bad loans from 2020 to September 2025, part of routine balance sheet cleanup under RBI rules, with no cash loss as loans were fully provisioned. Despite no government capital infusions since FY2022-23, PSBs turned profitable and raised ₹1.79 lakh crore via markets. Recovery continues through legal channels like the IBC and SARFAESI. Over 583,000 fraud cases worth ₹3,588 crore were reported in four years, with only ₹238 crore recovered, as digital frauds rise. PSBs also provided ₹21.71 lakh crore in export credit.