Do not protect the corporate bank loan defaulters, says CPI in a statement
AMN / WEB DESK
The National Secretariat of the Communist Party of India issued the following statement today
It is a matter of serious concern that the amount of bad loans/Non Performing Assets in the Banks increasing and equally disturbing is the huge write off of such bad loans in favour of the big corporate companies who take loans from the Banks and do not repay.
Few days ago, in a written reply to the Parliament, Finance Minister Nirmala Sitharaman has informed that during the last four years from 2019 to 2022, public sector banks and private sector banks have written off bad loans to the extent of Rs. 8,48,186 crores.
Replying to the discussion on this Question, Finance Minister said that this amount is not actually written off and the same would be recovered.
In another reply, the Minister of State for Finance Dr. Bhagwat Karad has informed that in the last five years from 2018 to 2022, Banks have written off Rs. 10,09,510 crores. Mr. Karad further informed that out of these loans written off, only Rs. 1,32,036 crores have been recovered. This clearly shows that against loans written off, only 13 % was actually recovered and the Banks have lost the balance 87% i.e. Rs. 8,77,474 crores. Still Nirmala Sitharaman has informed the Parliament that the written off loans are being recovered. This is only hoodwinking the people of our country.
| WRITTEN OFF AMOUNT Rs. IN CRORES | RECOVERY IN WRITTEN OFF ACCOUNTS | |
| 2017-18 | 1,61,328 | 12,881 |
| 2018-19 | 23,6,265 | 25,501 |
| 2019-20 | 2,34,170 | 30,016 |
| 2020-21 | 2,02,781 | 30,104 |
| 2021-22 | 1,74,966 | 33,534 |
| In 5 years | 10,09,510 | 1,32,036 |
Do not protect the corporate bank loan defaulters
Only 13% of written off loans is recovered
Govt. should not hoodwink the people
Publish the names of defaulters and amount written off
Finance Minister also says that the names of the corporate companies for whom the loans have been written off cannot be revealed because of secrecy clause under Sec. 45E of the RBI Act, 1934. Nobody is preventing this Government to amend that provision to enable disclosure of the names of the borrowers who take loans from the Banks and cheat the Banks by not repaying the loans and ultimately these huge loans are written off. We demand that the RBI Act should be suitably amended in this regard and Government should publish the names of the beneficiaries of the write off.