Written off assets are those the bank or lender doesn’t count the money borrower owes to it. The financial statement of the bank will indicate that the written off loans are compensated through some other way. There is no meaning that the borrower is pardoned or got exempted from payment. His debt will remain and recovery measures against him will continue. But in the balance sheet of the bank, a bad asset should not remain bad forever. It should do some corrective action. In India, the major corrective action is provisioning.
