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  • Category: Miscellaneous

    NPAs in BJP lead NDA is 365 percent more than in UPA regime

    Gross Non-performing Assets (NPAs) under Mr.Modi led NDA rule till the last 6 years is 365 percent more than in UPAs last six years regime according to RBI analysis. The RBI data indicates, Public Sector Banks write-off Rs.18.28 lakhs crores from 2014-2020 in the NDA regime against Rs.5 lakhs crores from 2008-2014 in the UPA regime. Why these types of NPAs and huge amounts of public money get wasted? Why governments are so inefficient in protecting the public funds and causing a huge loss to our economy. Previously BJP politicians and people talked about the inefficiency of the UPA government in handling and now what about this government. Members, please give your views on this issue.
  • #720571
    First, banks are responsible for NPA. Why did they approve a loan for these businessmen who ran away from their country and now they are enjoying 'home away from home' on foreign land. NPA is a big burden for the government also because everybody will be asking to present regime why these people did not pay their loan to their banks. Why banks kept on distributing them a loan.

  • #720575
    I would like to analyze the matter in different way. That most of the non performing assets seeds were sown in the UPA regime and the benefits eventually transferred to be beneficiaries with the connivance of the power that ruled that time. And no loan taker turn to be pauper in just few months. It is the planned loot from the organized gang with the connivance of the previous govt which even facilitated their safe exit to the other countries.It is the Modi govt which is now on the spree of catching each one of them and make them responsible to pay to the concerned bank for their fraud. In fact those bank heads need to be investigated and made public as to who forced them to give such big loans when the govt was going to exit anyway. The truth would be out sooner or the later and the author would understanding who is right and who is wrong.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #720578
    The debris crated in last 70 years cannot be cleaned by any Govt however efficient and able it might be. The NPA issues are very old and the reporting system in our country is such that when there are enquiries then many things are revealed in toto. What we are seeing today is the culmination of a long time mismanagements in banks and would take time to get rectified. Same thing is happening in illegal drug business where the Narcotic Control Bureau (NCB) has recently done so many raids on the traffickers and so much drugs are being found with them. Does it mean that this drug problem is a recent one. Once we start catching people and raids are done then only the statistics increase. The increase in the statistics which indicate to a cumulative patterns are a sign that the present governance is doing better than the earlier one and due to that only this hue and cry is there.
    Knowledge is power.

  • #720581
    Mohan and Umesh, your fascination for the BJP is understood. But do you stand to lose anything if you call a spade a spade? I agree that banks should have acted more responsibly but let us not forget who facilitated the escape of Vijay Mallya and Nirav Modi. Let us, for heaven's sake, accept that Modi and Shah Pvt Ltd is inclined towards corporates. I am not saying that the Congress/ UPA governments were flawless but they, I feel, always had the common man in mind.
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #720583
    The efforts of defending the undefendable are laudable. The Reserve Bank of India (RBI) releases Financial Stability Reports (FSR)periodically. The figures mentioned by the author are from that report only. For the benefit of the members, I will add some more statistics released by the RBI in the FSR of the previous years. The contention of two members who responded so far is that the present Government is burdened by the previous Government mismanagement in the banking sector. I will give a comparative study of the Non-Performing Assets (NPA) during the present and the past Government.

    2008-09, addition of NPA is Rs 24094 crores. No loan was written off.
    2009-10, addition of NPA is Rs 44817 crores. Rs 2897 crores were wrtten off.
    2010-11, addition of NPA is Rs 58227 crores. Rs 5884 crores were written off.
    2011-12, addition of NPA is Rs 93152 crores. Rs 2347 crores were written off.
    2012-13, addition of NPA is Rs 119811 crores. Rs 7187 crores were written off.
    2013-14, addition of NPA is Rs 163920 crores. Rs 13794 crores were written off.

    Now coming to the present Government.

    2014-15, addition of NPA is Rs 177860 crores and Rs 50978 crores were written off.
    2015-16, addition of NPA is Rs 385961 crores and Rs 59444 crores were written off.
    2016-17, addition of NPA is Rs 327593 crores and Rs 81990 crores were written off.
    2017-18, addition of NPA is Rs 488175 crores and Rs 129503 crores were written off.
    2018-19, addition of NPA is Rs 210531 crores and Rs 183168 crores were written off.
    2019-20, `addition of NPA is Rs 238464 crores and Rs 178305 crores were written off.

    These are the figures given by the Reserve Bank of India in their FSR of each year. From the above, it is clear that the NPAs are added more rapidly in the present Government. Another disturbing factor is that massive amounts of bad loans are being written off in the present regime. It is to be clearly understood that whatever Government it may be, the money saved by the public in the banks are not properly managed. To show improvement in their figures, the bad loans are written off so that the accounting figures look good to the public.

    How long this Government can lie and try to pass off their failures on the previous Government? Those who support the Government should use their brain and not blindly support everything done by the Government. At the end of the day, it is our money that is being mismanaged.

    " Be Good and Do Good "

  • #720588
    From the above details shared by KVRR has much to infer. That the present govt unable to recover the old dues having confronted through the big players were eventually written off as it might have felt not recoverable. But given the impetus to have the self reliance goal of the present govt the banks were given the rights to sanction big loans to the reliable borrowers. In that process the NPA might have increased. Here the banks are not pressurized but they acted on their own after scrutiny. It seems the banking system need to be blamed and not the govt for this fiasco and RBI need to be strict in its norms.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #720590
    Just while I am typing to give a reply to Mr. Mohan and Mr.Umesh about the facts given by RBI I found Mr.KVRR sir gave a perfect and sensible reply. So for me, there is no need to explain any further. Remember these are the facts given by RBI itself FSR of each year and is published in many newspapers.

    Please verify from this link:-

  • #720594
    Mr.Mohan, According to BJP policy for this 70 years ruled party has to be blamed because of high NPAs in the present government?

  • #720595
    Mr. Mohan, don't be blind to the facts. The statistics refer to the addition of NPAs during each regime. The Government is responsible for the performance of the banks as it can control them through RBI. You blame UPA for the NPAs but when it comes to NDA, you try to support it in one way or the other without much substance. Accept the shortcomings of the present Government. You say for self-reliance the banks are now giving loans. If it were so, is it also not true of UPA? Do not try to defend in a meaningless manner. The loans that were written off are of big industrialists. They are getting the advantage. The failure of RBI is nothing but the failure of the Government. Who prevented the present Government to recover the bad loans? Why the Government is shy of publishing the names of the big defaulters? Think in a rational manner and do not be a blind follower.
    " Be Good and Do Good "

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