Banks Lost Rs 6.6 Lakh Crore As Bad Loans Under PM Modi: 3-Times More Than Congress’ Rule
The Modi Government in a bad light!
As per Reserve Bank of India (RBI) data, Banks operating in India have written off bad loans worth Rs 660 thousand crore since 2014 – also the year BJP came to power at the Centre.
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Shocking Rise in NPAs!
According to the RBI data, NPAs or bad loans on the financial books of banks have also seen a steep rise ever since 2014 – also the year the Bharatiya Janata Party-led government came to power at the Centre.
An RTI application was filed by economist and activist Prasenjit Bose and in response the RBI has now confirmed that in the last four years of the Modi Government, loan frauds have amounted to a whopping ?55,000 crore more than in the previous five years of UPA-II under former Prime Minister Manmohan Singh.
Bose said in a state of shock and dismay, “Where are the investigating agencies? How many fraudsters have been arrested and prosecuted for their crimes? The Union Finance Ministry must be held accountable for this massive loot of money from the banks and undermining the public sector banking system.”
The quantum of loans that were written off amounts to half of the total non-performing assets or bad loans that were recorded in the financial books of the banks.
The total NPAs in 2013-14 amounted Rs. 205 thousand crore, which shot up to a shocking Rs 1,173 thousand crore in 2018-2019. This sharp rise in NPAs is appalling, especially under the watch of the party that promised in its 2014 election manifesto that it would “take necessary steps to reduce NPAs in the banking sector.”
The industry experts, analysts and bank employees’ unions state that the reason behind the ‘scrambling’ Indian banking industry is the rising NPAs, written off bad loans, bank fraud cases.
Sorry Picture for the Indian Banking Industry as Bank Fraud Cases Rise!
During the same period, the cases of bank frauds also saw a shocking rise. Cases of frauds of more than Rs 1 lakh stood at 4,306 in 2012-13, and rose to 6,801 in 2018-19.
As the number of bank fraud cases increased, so did the amount of money sunk owing to these frauds. According to RBI’s annual report for 2018-19, the amount sunk in March 2013 due to bank frauds was Rs. 10.2 thousand crore, which sharply rose to Rs 71.5 thousand crore in March 2018.
The latest example of the collapse of the private sector bank, Yes Bank states the impact of rising bad loans and growing cases of bank frauds already being felt by depositors. Upon the massive collapse, RBI was forced to impose a moratorium on the private lender on March 5.