Bank of Baroda has written off loans worth ₹35,715 crore involving borrowers with outstanding dues of ₹100 crore or more over six financial years from FY2020-21 to FY2025-26, according to information provided under the Right to Information (RTI) Act. The bank, however, has declined to disclose the names of the borrowers involved.
The figures were provided in response to an RTI application filed by Pune-based activist Vivek Velankar. According to the response, the bank recorded its largest technical write-offs during FY2020-21 and FY2021-22, at ₹11,916 crore and ₹11,261 crore respectively. Across the six-year period, Bank of Baroda reported recoveries of ₹9,946 crore from these accounts.
The term “technical write-off” is important in this case. A technical write-off does not mean that the borrower’s liability has been cancelled or that the bank has permanently given up efforts to recover the money. Bank of Baroda has clarified that such loans can be removed from the balance sheet for accounting purposes while recovery proceedings continue through mechanisms such as the Debt Recovery Tribunals, SARFAESI proceedings and the Insolvency and Bankruptcy Code.
The bank also disclosed that ₹7,817 crore was involved in haircuts on large loan accounts settled through mechanisms including the National Company Law Tribunal (NCLT) and other forums during the period. A haircut generally refers to the amount that a lender agrees to forego while settling a distressed loan.
The biggest controversy surrounding the RTI response is the refusal to provide borrower-wise details. Bank of Baroda cited exemptions under the RTI Act, including provisions relating to third-party information, fiduciary information and privacy. The bank has maintained that customer-specific credit information is protected under applicable laws and regulations.
The development has triggered questions about transparency, particularly because the accounts involved outstanding amounts of at least ₹100 crore. At the same time, it is important to note that a write-off should not automatically be interpreted as a loan waiver or as money being legally forgiven. Government data has similarly clarified that borrowers remain liable for written-off loans and banks continue recovery action.
Bank of Baroda's latest clarification therefore puts the ₹35,715-crore figure in context: the amount represents technical write-offs rather than a complete waiver of borrowers' obligations. The bank says recovery efforts remain ongoing, while the identities of the borrowers remain undisclosed.
