Concept Definition: Technical Write-off (or Prudential Write-off). Mechanism: Accounting: The bank uses its profits to fully provide for the bad loan and removes it from the "Gross Advances" list.

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This cleans up the NPA ratio.

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Legal: The debt still legally exists.

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The bank continues its recovery efforts (e.g., in courts or DRT). If money is recovered later, it is recorded as "Recovery in Written-off Accounts" (Profit). Causal Reasoning: This is primarily a balance sheet management tool, distinct from a "waiver" where the borrower is actually released from liability.