In the nine months from April to December 2020, scheduled commercial banks(SCBs) had to write off loans totaling ₹1.15 lakh crores. The written-off amounts for FY20 and FY 19 stood at ₹2.34 lakh crores and ₹2.36 lakh crores. Thus, the total amount written off is ₹5.85-lakh crore.

It's too early to confirm whether the default level has plateaued at a little over ₹2 lakh crores.

Of course, the written-off amounts are now merely taken off from the book of accounts, and the efforts to recover the defaulted amount continue. To structure these processes, the government is on the way to set up a bad loan bank as announced in the FY22 budget.

Official figures tabled in Parliament show that SCBs have succeeded in recovering ₹68,000 from FY19 to the first nine months of FY21.