Public Sector Banks continue to bleed amid indifference of powers that be in our country. Minister of State for Finance, Mr Jayant Sinha has informed the country that there is a 24 % increase in NPA ( bad loans) of public sector banks in the past one year. The Data is tabulated below:

Date 31.03.2013 31.03.2014 31.03.2015
NPA(in Rs Lakh Crores) 1.64 2.16 2.67
Gross NPA Ratio (in %) - 4.72 5.43
Communication of above data religiously every year has become a routine for RBI and Ministry of Finance. Some noises are heard and then all is forgotten.
Unwillingness to Improve
RBI Governor Mr Raghuram Rajan while  delivering the Dr Verghese Kurien Memorial Lecture at IRMA, Anand in November 2014 had said the following-
….."The sanctity of the debt contract has been continuously eroded in India in recent years, not by the small borrower but by the large borrower. And this has to change if we are to get banks to finance the enormous infrastructure needs and industrial growth that this country aims to attain. In India, too many large borrowers insist on their divine right to stay in control despite their unwillingness to put in new money. The firm and its many workers, as well as past bank loans, are the hostages in this game of chicken — the promoter threatens to run the enterprise into the ground unless the government, banks, and regulators make the concessions that are necessary to keep it alive.”
Thus we have a situation where the disease of a patient is known by the doctor, but all collude to stall the treatment !
Restructuring Loans
Recently in the case of Bhushan Steel, long term restructuring of Rs 30,000 crore loans has been approved. Under this plan, they have a four year moratorium on principal repayment. After this, there would be a 21 year repayment period , with a provision to refinance every five years.
The officers of Bhushan Steel have struck a good bargain ! At whose cost ?
Media and people seem to have forgotten Kingfisher Airlines. Have they also maneouvred a good deal ?
Every citizen who has taken a home loan and is unable to repay should approach the Government of India and RBI for same facility.
RBI Governor and Honourable Minister Mr Jayant Sinha should be listening.
Sushasan Achhe Din
It is hoped that under the poll promise of Sushasan and Achhe Din, the BJP government under the able leadership of Mr Narendra Modi will address these issues and steer the nation to a bright future free of such manipulation.
We need to see a decline in NPA’s of banks, otherwise our country could go the way of-  God Knows What !

More By  :  Navin Chandra Mishra

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