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  • Category: Miscellaneous

    8 lakh crore money was waived off as bad and doubtful debts by banks ?

    We all know that drawing our own money in bulk sometimes give challenging times with the bank, and getting a loan is the distance dreamer for a normal savings bank account holder. But the intelligent people are those who knows all loop holes of the banking system and thus they garner big and biggest loans very easily and after paying few installments sincerely, the loan taker would slowly turn as the defaulter and in within quick period he becomes pauper too. Unable to recover such dues, the banks have waived off 8 lakh crore rupees so far. Whose money they played with ?
  • #574789
    Between the period 2004 to 2015, the total amount of more than Rs 2.11 lakh crore has been written off by the 29 Indian PSU banks.
    Rs 1,14,182 crore which is more than half such loans have been waived off between 2013 and 2015 only. Thus the bad loans of banks grew @ of 4% between the period 2004 to 2012, though between the period 2013 to 2015, they rose @ almost 60%.
    The maximum bad loans were written off in the year ending March 2015. The top five are as follows- SBI - Rs, 21,313 crore, PNB - Rs. 6568 crore, IOB - Rs. 3131 crore, Allahabad Bank - Rs. 2109 crore and IDBI Bank - Rs. 1609 crore.
    Recently the ' Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016' has been passed in the Lok Sabha which is likely to provide for expeditious recovery of bad loans by the banks.
    Much activity has generated after the episode involving liquor baron Vijay Mallya, who owes Rs 9,000 crore to banks and has left the country to take refuge in England.

    Let us encourage each other in sharing knowledge.

  • #574812
    Well, eight lakh crore rupees is a humongous amount. I could understand the situation more clearly due to the above response. A loss to the bank is a loss to the people or government indirectly. If banks lose their money, that too a big amount like lakh crores, they may increase the interest etc,. which is a burden to the people. This is one of the consequences which can occur if security is not given the highest priority.

  • #574822
    Just imagine it is the depositors money the banks have been so liberal to give loans for the known defaulters and waive off permanently ?
    K Mohan
    I consider myself as the learner everyday

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