The Kanal: National: Saturday, 29 August 2026.
An RTI application filed by Sajag Nagrik Manch has revealed a significant disparity in Central Bank of India’s loan recovery process. The RTI data shows the bank recovered nearly 74% of technically written-off loans below ₹1 crore, but only about 15% from loans above ₹100 crore, while refusing to disclose the names of large defaulters or details of loan haircuts.
A Right To Information (RTI)
reply issued by Central Bank of India (CBI)
in response to an application filed by Vivek Velankar, president of Sajag
Nagrik Manch, has brought renewed attention to the bank’s loan write-off and
recovery practices. The RTI response, covering the period from FY2016-17 to
FY2025-26, highlights a sharp difference between recoveries from small
borrowers and large corporate borrowers whose loans were technically written
off.
The RTI application sought details of loan write-offs above ₹100 crore, recoveries made after write-offs, names of major borrowers, and information on settlements through the National Company Law Tribunal (NCLT) involving loan haircuts.
Big Defaulters: ₹26,701 Crore Written Off, Recovery Only ₹3,874 Crore:
According to the RTI reply, the Central Bank of India technically wrote off ₹26,701.55 crore in loans belonging to borrowers with outstanding dues above ₹100 crore during the ten financial years.
Of this amount, the bank recovered only ₹3,874.41 crore up to 31 March 2026, resulting in an overall recovery rate of around 14.5%.
The largest write-off occurred in FY2018-19, when loans worth ₹7,002.58 crore were written off, while recoveries from those accounts stood at ₹761.01 crore. In FY2024-25, loans worth ₹2,255.61 crore were written off, but recoveries were only ₹53.42 crore.
Small Borrowers Show Much Higher Recovery:
The RTI reply presents a contrasting picture for borrowers with loans below ₹1 crore.
Between FY2016-17 and FY2025-26, the bank wrote off ₹6,774.23 crore in small loans and recovered ₹5,004.28 crore, translating into a recovery rate of nearly 74%.
Most of these write-offs and recoveries were recorded in FY2022-23 and FY2023-24, when the bank recovered a substantial share of technically written-off small loans.
Bank Refuses to Reveal Names of Large Defaulter:
Vivek Velankar requested the names of all borrowers whose loans above ₹100 crore were technically written off, along with the amount written off for each account.
The Central Bank of India declined the request, stating that the information relates to third parties and therefore cannot be disclosed under the RTI Act.
The bank gave the same response when asked for the names of borrowers whose loans were settled through NCLT or similar forums after accepting haircuts.
Haircut Details Also Withheld:
The RTI application also sought the total amount of haircuts accepted by the bank in loan settlements between FY2017-18 and FY2025-26, along with the corresponding recovery amounts.
The bank replied that the query was not clear and did not provide the requested figures.
Sajag Nagrik Manch Questions Accountability:
Reacting to the RTI reply, Vivek Velankar said the figures expose a serious imbalance in the treatment of borrowers. He alleged that while banks publicly identify and pursue small borrowers through recovery notices and property auctions, they continue to withhold the identities of large defaulters whose loans involve thousands of crores.
He also questioned the lack of transparency surrounding NCLT settlements and loan haircuts, and called for greater accountability from public sector bank boards, the Reserve Bank of India, and the Union Ministry of Finance.
The RTI reply has once again revived the debate over transparency in large corporate loan write-offs and equal treatment of borrowers within India’s public sector banking system.
Source: Moneylife
An RTI application filed by Sajag Nagrik Manch has revealed a significant disparity in Central Bank of India’s loan recovery process. The RTI data shows the bank recovered nearly 74% of technically written-off loans below ₹1 crore, but only about 15% from loans above ₹100 crore, while refusing to disclose the names of large defaulters or details of loan haircuts.
The RTI application sought details of loan write-offs above ₹100 crore, recoveries made after write-offs, names of major borrowers, and information on settlements through the National Company Law Tribunal (NCLT) involving loan haircuts.
Big Defaulters: ₹26,701 Crore Written Off, Recovery Only ₹3,874 Crore:
According to the RTI reply, the Central Bank of India technically wrote off ₹26,701.55 crore in loans belonging to borrowers with outstanding dues above ₹100 crore during the ten financial years.
Of this amount, the bank recovered only ₹3,874.41 crore up to 31 March 2026, resulting in an overall recovery rate of around 14.5%.
The largest write-off occurred in FY2018-19, when loans worth ₹7,002.58 crore were written off, while recoveries from those accounts stood at ₹761.01 crore. In FY2024-25, loans worth ₹2,255.61 crore were written off, but recoveries were only ₹53.42 crore.
Small Borrowers Show Much Higher Recovery:
The RTI reply presents a contrasting picture for borrowers with loans below ₹1 crore.
Between FY2016-17 and FY2025-26, the bank wrote off ₹6,774.23 crore in small loans and recovered ₹5,004.28 crore, translating into a recovery rate of nearly 74%.
Most of these write-offs and recoveries were recorded in FY2022-23 and FY2023-24, when the bank recovered a substantial share of technically written-off small loans.
Bank Refuses to Reveal Names of Large Defaulter:
Vivek Velankar requested the names of all borrowers whose loans above ₹100 crore were technically written off, along with the amount written off for each account.
The Central Bank of India declined the request, stating that the information relates to third parties and therefore cannot be disclosed under the RTI Act.
The bank gave the same response when asked for the names of borrowers whose loans were settled through NCLT or similar forums after accepting haircuts.
Haircut Details Also Withheld:
The RTI application also sought the total amount of haircuts accepted by the bank in loan settlements between FY2017-18 and FY2025-26, along with the corresponding recovery amounts.
The bank replied that the query was not clear and did not provide the requested figures.
Sajag Nagrik Manch Questions Accountability:
Reacting to the RTI reply, Vivek Velankar said the figures expose a serious imbalance in the treatment of borrowers. He alleged that while banks publicly identify and pursue small borrowers through recovery notices and property auctions, they continue to withhold the identities of large defaulters whose loans involve thousands of crores.
He also questioned the lack of transparency surrounding NCLT settlements and loan haircuts, and called for greater accountability from public sector bank boards, the Reserve Bank of India, and the Union Ministry of Finance.
The RTI reply has once again revived the debate over transparency in large corporate loan write-offs and equal treatment of borrowers within India’s public sector banking system.
Source: Moneylife
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