The Bangladesh Bank is not presenting the complete picture of non-performing loans (NPLs) in our banking sector, because there are some other loans that also qualify as NPLs that are not being counted, such as loan write-offs and risky loans.
ARC executives find written-off assets particularly appealing as the number of sizeable bad loans awaiting recovery have dipped, thanks in part to banks’ persistent corrective measures, including selective targeting of corporate borrowers.
According to government estimates, loans written off by PSBs crossed ₹7.34 trillion in the last five years till FY22, with a mere ₹1 trillion recovery during this period. Including scheduled, private and foreign banks, the write-off crossed ₹10 trillion