Banks Clock Better Loan Quality in Q4 on Write-offs

India's leading banks have written off much higher value of loans in the previous fiscal year (FY25) as well as in the last quarter of the fiscal compared to FY24.

- Anshika Kayastha

MUMBAI: These write-offs have helped the banks report lower non-performing asset (NPA) ratios, despite ongoing stress in their retail unsecured and microfinance portfolios.

For the full fiscal FY25, 10 major banks that have declared their Q4 results so far cumulatively wrote off loans worth ₹80,568 crore compared with ₹74,931 crore in FY24, as per data compiled by Mint. These banks are State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank, Bank of Baroda, Axis Bank, Federal Bank, Indian Bank, Bandhan Bank and RBL Bank.