Actu de l'ile Maurice
india

Rs 2.41 lakh crore written off by Public Sector Banks, Banerjee indignant

Rs 2.41 lakh crore written off by Public Sector Banks, Banerjee indignant

At a time India faces huge scams scandals, a major revelation during a session of parliament comes to worsen the existing tensions. Public Sector Banks (PSBs) had proceeded to the writing off of loans amounting to Rs 2.41 lakh crore over a period of three years, between April 2014 and September 2017. This over-sensitive information had been underlined in Private Notice Question (PNQ) of Shri Ritabrata Banerjee requesting

“whether it is a fact that 2.4 lakh crore amount of Public Sector Banks (PSBs) loans of crony corporate have been written-off by the present Union Government till September 2017…”

The question was addressed to Minister of State for Finance Shiv Pratap Shukla. The latter claimed in a written reply to the Assembly of the Rajya Sabha that the written off of Non-Performing Assets (NPAs) or bad depts was a common procedure in the banking sector to achieve taxation efficiency and cleaning up their balance sheet.

“I am shocked”

The coming up to light of this information had raised much criticism from Trinamool Congress Chief and Bengal Chief Minister Mamata Banerjee. The latter, vehemently argued that money is been thrown away by the government, while farmers are still struggling to keep their head above water.

“I am shocked to see at a time, when farmers in the country are crying and committing suicide for their loan burden… the Government of India have not even considered that”, said Banerjee in a facebook post.

On the other hand, Shukla claimed that the written off of those bank loans had not been done to benefit borrowers. He also added that borrower’s credit information is confidential and may not be disclosed, a declaration that lead to further criticisms from Ms Banerjee.

Since the Punjab National Bank (PNB) fraud scandal was brought to spotlight earlier in February, State Representatives had been harshly slammed by members of the opposition. These clashes had led to allegations of corruption against members of parliament and had largely contributed to political instabilities on the national scene.

Latest RDI report revealed, that 21 public banks, which equals to two- thirds of the state’s banking assets, had since December write off 15.8 percent of their total loans or an amount of 8.26 lakh crore.