Ufaq Jan
Srinagar: Jammu and Kashmir Bank has written off non-performing assets (NPAs) worth more than Rs 3,750 crore since FY 2020-21, official data tabled in the Rajya Sabha has revealed. The information was provided in a written reply to Unstarred Question No. 1033 on the credit and liquidity position of banks.
As per the bank-wise data on reduction in NPAs due to write-offs, J&K Bank wrote off Rs 1,185 crore in FY 2020-21, Rs 758 crore in FY 2021-22, Rs 805 crore in FY 2022-23, Rs 613 crore in FY 2023-24 and Rs 349 crore in FY 2024-25. During the current financial year 2025-26, up to September 30, NPAs worth Rs 42 crore have been written off by the bank.
The reply also quoted the Reserve Bank of India as stating that it does not maintain separate information on instances of diversion of loan amounts exceeding Rs 25 crore by borrowers violating loan conditions. However, under the RBI’s Master Directions on Treatment of Wilful Defaulters and Large Defaulters, lenders classify borrowers as wilful defaulters based on specific features, including diversion of funds.
According to RBI data, as on March 31, 2025, a total of 879 unique borrowers, excluding overseas borrowers, each having outstanding loans of more than Rs 25 crore, were classified as wilful defaulters by scheduled commercial banks and all-India financial institutions. The RBI further informed that details of wilful defaulters with dues of Rs 25 lakh and above are available in the public domain through credit information companies regulated by the central bank.
The government reiterated that write-offs do not amount to loan waivers and banks continue to pursue recovery through legal mechanisms such as the Insolvency and Bankruptcy Code, SARFAESI Act and debt recovery tribunals.
The reply also highlighted the significant expansion of the banking sector over the last decade. As per RBI data, total deposits with scheduled commercial banks increased from Rs 79.84 lakh crore as on June 30, 2014 to Rs 234.59 lakh crore as on June 30, 2025. During the same period, gross loans and advances rose from Rs 60.60 lakh crore to Rs 182.31 lakh crore, reflecting substantial growth in credit and liquidity across the banking system.
The disclosures have once again brought focus on asset quality, large borrower defaults and recovery mechanisms, including their implications for regional lenders such as J&K Bank operating in challenging economic conditions.
