Canara Bank is the latest to join other big public sector banks (PSBs) that have written off bad loans worth thousands of crores of rupees and recovered paltry amounts from big defaulters.
Like other PSBs, Canara Bank also refused to share this information as well as names of defaulters under the Right to Information (RTI) Act and instead asked the applicant to check its annual reports.
Data shared by Pune-based RTI activist Vivek Velankar shows that during the past eight-year period from FY12-13 to FY19-20, Canara Bank wrote off a total of Rs47,310 crore while recovering just 19% or Rs8,901 crore from defaulters.
As happened with other PSBs that we have reported so far, Canara Bank too used vague reasons (privacy) for not sharing information like names of big defaulters with a bad loan of Rs100 crore and above. In the reply to the RTI, the Bank says, "Information sought is the personal information of the concerned and if disclosed would invade the privacy of those concerned and its disclosure does not have any relationship with public interest or activity and is exempted under section 8(1)(j) of the RTI Act."
An aggrieved Mr Velankar, who is also president of the Sajag Nagrik Manch, asks, "When a common borrower defaults, the same banks publish his name and all details through advertisements in newspapers. Then why do they want to keep names of big defaulters hidden
under the privacy cause? Why doesn’t the 'privacy' clause apply while publicising names of common borrowers?"
In several judgements, the central information commission (CIC) had ruled that, to qualify for the exemption under Section 8(1)(j) of the RTI Act, the information must satisfy certain criteria, such as personal information and public interest.
Ordinarily, the adjective 'personal' is attributed to that which applies to an individual and not to an institution or a corporate. Therefore, it flows that 'personal' cannot be related to institutions, organisations or corporates, especially publicly listed entities with a large shareholding of retail investors.
Hence, Section 8(1)(j) of the RTI Act cannot be applied when the information concerns institutions, organisations or corporates.
Former central information commissioner Shailesh Gandhi had observed in a judgement, “...disclosure of information, which is routinely collected by the public authority and provided by the public servants, cannot be construed as an invasion of the privacy of an individual and must be provided to an applicant under the RTI Act."
In the case of Canara Bank, the information on loan write offs, recovery and all other details like names of borrowers are collected and then reported to the Reserve Bank of India (RBI) as statutory obligation. In the circumstances, Canara Bank has no right to withhold this information under any Sections of RTI Act. Yet, the bank has refused to share names of big defaulters with Mr Velankar.
Technically speaking, when debts are written off, they are removed as assets from the balance sheet because the bank does not expect to recover payment. This practice is frowned upon by experts but is routinely done by banks as part of their tax management clean-up process.
In contrast, when a bad debt is written down, some of the bad debt value remains as an asset because the bank expects to recover it. However, as State Bank of India (SBI), Bank of Baroda (BoB), Bank of Maharashtra (BoM), Union Bank of India (UBI), IDBI Bank, Punjab National Bank (PNB) and Indian Overseas Bank (IOB) have shown, most of the times, there is no recovery or negligible recovery for the amounts written off.
Such write-offs also debunk the aggressive posturing by the government and policy-makers about their so-called recovery efforts.
Union Bank of India too wrote off bad debt worth Rs26,072.81 crore between FY11-12 and FY19-20 (this information pertains only to loans of over Rs100 crore).
FOR EVERY COMPLICATED PROBLEM, WE HAVE A SIMPLE REMEDY FOR A KARMA YOGI PM WITH A REVOLUTIONARY MINDSET-DR.MANMOHAN SINGH. AN ACCIDENTAL PM:
1. Any ways, the PMO has taken over Fiiance Portfolio for a deep study into wheewithal of World Bank, the US $, the British Pound, and EUROS, etc.
2. It is an open secret to note that Bank Finance is made available at 4.00% PA in the USA, Australia, Singapore & Newzealand, etc. With the creative mindset of Karma Yogi PM, Shri Narendra Modi, the deposit interest is brought down vis-a-vis advance/loan interest rates. Surprisingly, PSBs mobilized INR.20 trillion.
3. To loot the Indian wealth in Trillions & shift it across the borders was a way of life during Congess regime. Congress leadership looted INR.17 quadrillion, which is 45 times more than Modiji's humble plan of mobilizing US$.5 trillion by selling India's Sovereign Bonds. There is a nexus between members of CVC, IBA & CORNERED & BRIBED-UFBU AFFILIATES LED BY CHV , PSB boards/CEOs/CMDs + Duds of UFM, ruling politicians & fugitives, etc. Unless & until the nexus is broken & culprits are booked & punished- though opening a Pandora's box- no future for India.
4. When POs mobilized huge sums of deposits and such sums were utilized by GOI through annual budgets, why can't the deposit moneys be mobilized by PSBs & be utilized by GOI routed throughannual budgets. BJP led NDA has sufficient majority in Parliament.
5. With a single stroke of his pen the PM can do so, in consultation with the accidental PM, DR.Manmohan Singh, A TRUE PATRIOT TOTHE CORE, X RBI GUV. Once the PSB employees'/retirees' issues are brought under the purview PAY COMMISSION, the entire PSB employees/retirees are benefitted.
6. https://www.youtube.com/watch?v=4Si8U02s8cQ.
7. SATYAMAEVA JAYATHE!!!
1. How come PSB managements refuse to share the names of big defaulters, as it is grandpa's property of Apex level management[s]. How come RBI extends blanket moral support to PSBs & SBI in violationof SC judgments.?
2. Are we living in Jungle Raj or democracy? Why PMO/UFM are keeping mum to spoil the public confidence in PSs vis-a-vis the image of GOI, ruled by BJP led NDA?
3. https://www.youtube.com/watch?v=4Si8U02s8cQ.
4. SATYAMAEVA JAYATHE!!!
Take it easy....