Work out write off impact instantly with clear inputs, formula shown and shareable results.
Writing off a loan removes it from both impaired assets and advances, improving the reported ratio without any cash recovery. Only the unprovided portion hits profit, which is why heavily provisioned write-offs are nearly free to earnings.
Write-off effect
P&L hit = write-off - provision held; new ratio = (GNPA - write-off) / (advances - write-off)
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
No. It is an accounting step; legal recovery efforts normally continue and any recovery flows to profit.
Because write-offs shrink the numerator far more than the denominator, which is why cash recovery rates matter more than ratios.