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Rs 2.4 Lakh Crore Bad Loans Scrapped
By: Tupaki Desk | 4 April 2018 5:07 PM GMT
Public Sector Banks (PSBs) has written off Rs 2.41 lakh crore worth loans between the period April 2014 to September 2017.
In his written reply to Rajya Sabha, Minister of State (MoS) of Finance Shiv Pratap Shukla opined writing off Non-Performing Assets (NPAs) is a practice followed by banks to clean up their balance sheet and for achieving taxation efficiency. 'As per RBI data, Public Sector Banks wrote off Rs 2,41,911 crore from 2014 April to 2017 September. Written-Off Loans won't benefit borrowers as they will continue to be liable for repayment. Recovery of dues will happen as per legal procedures using SARFAESI Act and Debt Recovery Tribunals,' he informed.
Writing off such huge scale of Bad Loans invited the wrath of the Opposition Parties. West Bengal CM Mamata Banerjee breathed fire on Centre by accusing it of favouring big shots with loan waivers. She alleged NDA Government doesn't even care about farmers who die for not obtaining loans. TMC Supremo slammed Centre for not disclosing the names of loan defaulters. Many organizations aren't in a position to repay the loans in the past few years due to economic slowdown.
In his written reply to Rajya Sabha, Minister of State (MoS) of Finance Shiv Pratap Shukla opined writing off Non-Performing Assets (NPAs) is a practice followed by banks to clean up their balance sheet and for achieving taxation efficiency. 'As per RBI data, Public Sector Banks wrote off Rs 2,41,911 crore from 2014 April to 2017 September. Written-Off Loans won't benefit borrowers as they will continue to be liable for repayment. Recovery of dues will happen as per legal procedures using SARFAESI Act and Debt Recovery Tribunals,' he informed.
Writing off such huge scale of Bad Loans invited the wrath of the Opposition Parties. West Bengal CM Mamata Banerjee breathed fire on Centre by accusing it of favouring big shots with loan waivers. She alleged NDA Government doesn't even care about farmers who die for not obtaining loans. TMC Supremo slammed Centre for not disclosing the names of loan defaulters. Many organizations aren't in a position to repay the loans in the past few years due to economic slowdown.
