Public Sector Banks' Write-Offs Hit Multi-Year Lows Amidst Improved Recoveries

Loan write-offs by public sector banks fell to a multi-year low in FY 2025-26, driven by lower slippages and improved recoveries. Major banks reported the lowest write-offs in years, leading to better asset quality and profitability. The sector showed increased resilience amid challenging conditions.

The fiscal year 2025-26 saw a notable decline in loan write-offs by public sector banks, reaching multi-year lows attributed to reduced slippages and enhanced recovery efforts.

According to PTI's analysis, top banks like Bank of Baroda and Indian Bank reported their lowest write-offs in several years, showcasing a significant reduction in non-performing assets.

Experts highlight that the strengthened provision coverage and improved asset quality among PSBs contributed to healthier financial metrics and sustained profitability.