Actual Bad Loans about Rs 20Lakh Crore.

The total chunk of bad loans in Indian Banking Sector, at this time is around Rs 20 lakh crore which is much higher than what is reported by the banks and estimated by the central bank and the government, said by the ex-deputy governor of the Reserve bank of India (RBI) Mr. K C Chakrabarty.

“I’ll put the figure around Rs 20 lakh crore. It is not correct to say that NPAs are not only Rs 6 or 7 lakh crore. One must include all the troubled loans including reported bad loans, the restructured assets, written off loans and the bad loans that are not recognized yet. Unless this portion there can’t be any solution to the bad loan problems” said Mr. Chakrabarty in an interview.

As on December, the total gross non-performing assets (NPAs) of 42-listed banks in India were at 7.3 lakh crore. There is no accurate estimate of the total restructured loans and the amounts of loans were written off by banks. But according to the governmental data for the fiscal year ended March, 2016 the Indian public sector banks wrote off Rs 59,547 crore, while in the three fiscal year prior to that (FY13, 14 and 15) banks had written together Rs. 1.14 lakh crore of loans.