Recruitment of over 48,000 employees currently underway at PSBs
Banks write off non-performing assets (NPAs), including those for which full provisioning has been made after four years, as per RBI guidelines and policies approved by the banks’ boards | Photo Credit: Kesavan A N 1612@Chennai
Public Sector Banks (PSBs) wrote off over ₹12 lakh crore between FY16 and FY25, the Finance Ministry informed the Rajya Sabha on Tuesday. Data also showed that while 10 out of 12 PSBs saw a decline in write-offs over the last five years, State Bank of India and Canara Bank experienced a rise, especially during FY25.
Meanwhile, in response to another question, the Ministry stated that public sector banks are currently recruiting over 48,000 employees.
“As per the Reserve Bank of India (RBI) data, public sector banks (PSBs) have written off an aggregate loan amount of ₹12,08,828 crore, from financial year 2015-16 to financial year 2024-25 (provisional),” said Minister of State for Finance Pankaj Chaudhary in a written reply. The data presented as part of the written reply indicated that total write-offs exceeded ₹5.82 lakh crore between FY21 and FY25.
RBI guidelines
According to Chaudhary, banks write off non-performing assets (NPAs), including those for which full provisioning has been made after four years, as per RBI guidelines and policies approved by the banks’ boards. “Such write-off does not result in a waiver of liabilities for borrowers and, therefore, it does not benefit the borrower. The borrowers continue to be liable for repayment, and banks continue to pursue recovery actions initiated in these accounts,” he emphasised.
Furthermore, recovery in written-off loans is an ongoing process, with banks continually pursuing recovery actions against borrowers through various available mechanisms. These include filing suits in civil courts or Debts Recovery Tribunals, taking action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, and filing cases in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), among others.
In response to another question, Chaudhary stated that as of March 31, 2025, 1,629 unique borrowers, with an aggregate loan outstanding of over ₹1.62 lakh crore, were classified as wilful defaulters. Additionally, as per information from the Directorate of Enforcement, nine accused who fled the country have been declared Fugitive Economic Offenders. In these cases, assets amounting to over ₹15,000 crore have been confiscated under the Prevention of Money Laundering Act (PMLA) to date, and assets worth approximately ₹750 crore have been confiscated under the Fugitive Economic Offenders Act (FEOA). Moreover, nine accused have been convicted in these cases under the provisions of PMLA. Furthermore, assets amounting to over ₹25,000 crore have been restituted to victim banks or legitimate claimants in bank fraud cases.
Employment
Replying to a question on employment in public sector banks, Chaudhary said in a written reply that as of March 31, 2025, 96 per cent of staff are in position against their business requirements. “The small proportion of the gap is attributable to attrition due to superannuation and other usual factors, including unplanned exits,” he stated. Furthermore, over the last five years (FY20 to FY25), banks have recruited 148,687 employees, and for FY25 to FY26, the recruitment of 48,570 employees is underway.
Published on July 22, 2025
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