Bank Loans Write-off: NDA Scores Three Times over UPA, Says RTI
Quaid Najmi (IANS) 21 December 2020
In a dubious distinction of sorts, the Bharatiya Janata Party-led NDA rule achieved the highest loans write-off between 2015 and 2019, which is more than three times compared to the figures of bad loans written off during the previous Congress-led UPA regime from 2004-2014, as per an RTI revelation.
 
During the UPA's 10-year rule, around Rs2,20,328 crore was written off by various banks, and this figure shot up to Rs7,94,354 crore during the NDA regime from 2015-2019, resulting in a corresponding reduction in the banks' NPAs.
 
The data was provided under an RTI query by Pune-based businessman Prafful Sarda, giving some shocking insights into the state of affairs of not only public sector banks, but also those in the private sector and foreign banks.
 
The RTI reply figures around two-dozen public sector banks (PSBs), some three-dozen in private sector, nine scheduled commercial banks, and a whopping four-dozen foreign banks, and includes several in each category which have not written off any loans.
 
Of the loan write-offs in the Congress' decade (2004-2014), the PSBs accounted for approximately Rs1,58,994 crore, while the amounts written off by the private banks was Rs41,391 crore and for foreign banks it was Rs19,945 crore, with no write-offs by Scheduled Banks.
 
Later, in the NDA regime (2015-2019), the figures provided show a phenomenal increase with the PSBs accounting for a stupendous Rs6,24,370 crore loan write-off, with the private banks writing off Rs1,51,989 crore and the foreign banks shared the remaining 17,995 crore, (Total—Rs7,94,354 crore), besides an additional write-off by scheduled banks totalling Rs1,295 crore (Total - Rs7,95,649 crore).
 
In a silver lining, however, during the BJP rule, there was some recovery from the write-offs between 2015 and 2019—a paltry Rs82,571 crore or roughly 12% of the total Rs7,94,354 crore written off, according to the RTI reply.
 
"The official data is not only revealing but very distressing. During the 10 years of UPA government (2004-2014), the total loans written off was Rs2,20,330 crore, but during less than five years of the NDA (2015-2019), the figures zoomed up by almost 350 % to Rs7,94,354 crore," Sarda told IANS.
 
The surprising aspect is the huge increase in the write-offs by foreign banks—from 2004-2014, it was Rs19,945 crore in the UPA's 10-year tenure (Rs1,995 crore each year on an average), but shot up to Rs17,995 in the NDA's four years between 2015-2019 (Rs4,499 crore annual average).
 
Several global giants like HSBC, Barclays, CitiBank and Standard Chartered Bank apparently gained due to the write-offs, among many others, in the past 15 years of the UPA-NDA governments.
 
Mr Sarda questioned why the government should permit such write-offs by the financially sound foreign banks instead of concentrating on the financial health of the Indian PSBs, private, scheduled and cooperative banks which directly concern a majority of the countrymen.
 
"In 2020, it seems we still follow the 1995 policies for loan recoveries or write-offs rather than innovating to ensure relief to the common masses instead of select corporate houses and bankrupt businessmen like Vijay Mallya, Mehul Choksi, Nirav Modi etc," Sarda said.
 
Worse—many of these bank defaulters are absconding since years and the government has also admitted that it has caught only two of the 72 fugitives in the past five years.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
s5rwav
9 months ago
Congress and BJP 2 Sides of Same Coin. They Loot Poor and Make Rich and Influential the Richer. This has been Happening with Full Information and Connivance of the Suo Moto Empowered Judges, sitting at High Courts and Supreme Court of India, who should be Prosecuted as Anti National Criminals under Sedition Charge for Allowing Financial Frauds and Protecting the Financial Fraudsters.
s5rwav
9 months ago
Financial Frauds Continue by the Incumbent Govt in Aviation Sector also. Background of Air India Merger with Indian Airlines, Heard and Approved by the Joint Secretary to Govt of India, Ministry of Corporate Affairs in Capacity as High Court is SAME as (1) IBP-IOC Merger (2) BRPL-IOC Merger (3) MEL-SAIL Merger. Babubhai Vaghela was the Legal Objector in 1, 2 and 3. In 1 and 2 as the Investor. In 3 as a Concerned Citizen of India. That was Legal Fight for nearly 5 years. Govt of India Functionaries Realized the Fact that Mergers were Illegal and Stopped Further Govt Company Mergers nearly a decade ago. Now, Govt of India Wants to Sell Air India and Remove Competition between the Private Players and Govt Company. Once, All the Airlines are in Private Sector in India, Unprecedented Brazen Loot of Passengers can Commence. https://www.moneylife.in/article/rti-activist-challenges-propriety-of-mca-to-decide-mahelek-sail-merger/14422.html
drgmani.apollohospitals
9 months ago
But most of these NON PERFORMING ASSETS were given during the UPA rule before 2014 as loans especially in 2013 when Congress knew they are going to be routed in 2014 elections .They have thousands of crores on loans and kept the coffers empty in 2014...
kamalikapoddar
Replied to drgmani.apollohospitals comment 9 months ago
Lol that isn't true. RBI mandates that you mark a loan as NOA after 90days of non payments, and write off after 180-360 days. If what you're saying is right, then these loans should've been declared NPA by end 2013. But a quick search on RBI's site will show you thats not the case. Lots of them were after 2017's demon episode.
deepak.narain
9 months ago
The disease is wide-spread and deep-rooted and sincere efforts are needed to control/eliminate it. Why it happens? Can any expert enlighten about it?
cakrishnaprasad
9 months ago
Yes its indeed theblongnpending clean up required in banking sector.This story is very biased and not bringing out the efforts of governments efforts of write offs. UPA rule seem to ha e misstated numbers by hiding bad loans under the carpet. Write offs will definitely show the real picture of the banks affairs. It needs guts to write off. Hats off to GoI under NDA rule
kamalikapoddar
Replied to cakrishnaprasad comment 9 months ago
The only bias, was not mentioning the recovery of bad loans under UPA which thanks to the king of good times will be in single digits.
avrkam
Replied to cakrishnaprasad comment 9 months ago
This writer's name says it all. How can he be biased and want to be chamchas of gandhis always. Live like, slaves. These guys policy anything Modi oppose.. Very dangerous guys..
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