Bank of Baroda has written off a staggering ₹35,715 crore in loans over the past five years, while recovering less than 28% of that amount. At the same time, the bank has agreed to pay US$600 million—around ₹5,700 crore—to settle claims linked to the collapse of NMC Health.
In this audio, Sucheta Dalal examines the questions that these numbers raise about banking governance, accountability and taxpayer-funded institutions.
Why are the names of large defaulters kept confidential? What does the NMC settlement reveal about internal controls and regulatory oversight? And can falling NPAs and lower write-offs really be celebrated when concerns about evergreening, stressed loans and governance failures persist?
The discussion also looks at the wider imbalance between how large borrowers and ordinary depositors are treated—from loan write-offs and settlements to KYC-related account restrictions and growing concerns over access to customers' digital banking records.
The headline numbers may suggest that India's banking system is healthier. But, as Sucheta Dalal argues, the real question is whether the system is becoming more accountable—or simply better at hiding its problems.
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