Why are you shielding the defaulters?

Madam Nirmala Sitaraman has to answer!

The Government of India has released some data on Bank credit which requires critical analysis. In October & December loan melas Public Banks have released loans of Rs. 4.92 Lakh Crores. Out of this loan, Rs. 2,20,151 Cr has gone to Corporates (44.7%), Rs. 72,985 Cr went to MSMEs (14.8%) and Rs. 78,374 Cr to Agriculture (15.74%). Why the Corporates can’t go to the market with their shares or bonds as suggested by many Committees if they are efficient? Why Public Banks can’t improve MSME, agriculture and other retail credit which will have a multiplier effect on the economy?

Now look at the NPA level. From Rs. 3,12,706 Cr as on March ‘15 it went upto Rs. 10,21,464 Cr as on March ’18 and as on March 19 it was Rs. 9,40,673 Cr. There is more write off than recovery as per Fitch ratings. Parliament has been told that in the last 2 quarters alone Rs. 80,893 Crores have been written off by all banks. In the last 3 years, they have written off Rs. 3 lakh Crores. More write-offs are likely as per Fitch.

The question is why can’t the Govt disclose the names of the borrowers whose loans have been written off? Whom are you shielding? Which are the Corporates which got the benefits? Finance Minister Mrs.Nirmala Sitaraman has to answer. The people of the country who have deposited their money in more than 80 crore accounts which is being given as loans have a right to know.

Thomas Franco is former General Secretary of All India Bank Officers’ Confederation.

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