Burden of NPAs is falling into the Shoulders of Common Men!

No concrete actions have been taken against the defaulting parties and the financial burden, thus, created has been passed on to the middle class and ordinary bank account holders. This is a scam of highest order being covered by the pretext of bringing banking reforms!

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Burden of NPAs is falling into the Shoulders of Common Men!
Burden of NPAs is falling into the Shoulders of Common Men!
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The private as well as public sector banks in India are undergoing a phase of rapid rise in NPAs (Non performing assets). This simply means that the loans extended are not been paid back to the bank. Thirteen of the 15 listed private sector banks have experienced rise of the NPAs on a sequential basis, as per the data provided by Capitaline. The two banks whose NPAs have declined are Jammu & Kashmir Bank and YES Bank, whose NPAs fell by 6 percent and 32 percent respectively, from the end of the March quarter. The loans extended fell substantially for YES bank as it could recover 60 percent of the Rs. 910 crore exposures to Jaiprakash Associates.

The NPAs are also reaching worrisome position in the public sector banks. The sectors, where the NPAs are highest among the public sector banks are textiles, infrastructure, iron and steel, and metals. Fifth FICCI-IBA Survey conducted in the period January-June 2017, shows that over 50 percent of the respondents cite the sectors mentioned above as having high NPAs. The NPAs are also high in the sectors such as machinery, power generation, construction and trading, food processing, chemicals and sugar, among others.

The question remains as to why legal actions are not taken against the defaulters involving such high worth of assets in the way the channels of legalities were exploited in the case of Vijay Mallya. Or Mallya was just a scapegoat to convince the stakeholders about the seriousness with which the banks and the government are dealing with the issue? It can be construed, thus, that there a likelihood of these big ticket defaulters being in hand in glove with the government. No concrete actions have been taken against the defaulting parties and the financial burden, thus, created has been passed on to the middle class and ordinary bank account holders. This is a scam of highest order being covered by the pretext of bringing banking reforms! As it often happens, it is the middle class tax giving bank account holders who got the raw deal. It is equally surprising that there is not even a mention of CBI probing this scam! The incumbent government of India is in total control of the administrative machinery and all relevant authorities seem to be in their pocket. The diverting tactics of the government from the falling economy to communalism seems to be the answer to this worrisome situation developing.    

 

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