Government Has Destroyed Financial Institutes, Public Sector Banks: Randeep Singh Surjewala

Modi authorities dealt a lethal blow to the banking sector by means of demonetisation: Randeep Singh Surjewala

New Delhi:

Congress chief Randeep Singh Surjewala on Wednesday accused the federal government of destroying the monetary institutes in addition to public sector banks. Issuing a press launch, Mr Surjewala touched upon a lot of points regarding the nation’s financial system, accusing the federal government of failure.

“In March 2013-14, NPAs had been Rs 2,16,739 crores (3.Eight per cent of complete loans). NPAs elevated to Rs 9,35,000 crores as in September 2019 (to 9.1. per cent),” he mentioned whereas slamming the federal government.

“RBl’s July 2020 ”Monetary Stability Report” displays that Dangerous Loans within the Banking System can attain a whopping 14.7 per cent, a 20-year excessive. How did it balloon a lot?,” the Congress chief requested.

Hitting out on the authorities additional, he mentioned, “With the banks not allowed to get better loans from defaulters, all additional lending got here to a halt. Financial institution credit score development was 14 per cent when the Modi authorities assumed energy within the yr 2014. Financial institution Credit score Development is now right down to 4% and can develop into zero quickly, as per RBl’s personal report. This implies there is no such thing as a cash out there for companies that want them as a result of banks are hesitant to lend.”

“That’s exactly why of the Rs 3,00,000 crores assured loans to MSME’s introduced with a lot fanfare, solely Rs 1,23,000 crores had been sanctioned and a fair decrease quantity of Rs.68,311crores has been disbursed. The story repeats in every single place,” he mentioned.

Talking concerning the revelations by former RBI Governor Urjit Patel, Mr Surjewala added, “The damning proof of the Modi authorities’s dishonest intentions is now coming to mild. Recent revelations by former RBI Governor Urjit Patel have proven how the Authorities diluted the lnsolvency and Chapter Code, hurting the Central Financial institution’s efforts to get better dangerous loans. This benevolence in direction of crony capitalists has been unfolding since Dr Raghuram Rajan”s first warning to the PM that fell on deaf ears.”

“Modi authorities dealt a lethal blow to the banking sector by means of demonetisation and its influence continues to hang-out the financial system even after three-plus years of that fateful night of November 8, 2016. It achieved nothing. Foreign money in circulation has now reached an all-time excessive of 14 per cent of GDP,” he added.

Referring to the Rs 20-lakh-crore package deal introduced by the federal government, the Congress chief identified, “The Modi authorities”s response throughout COVID was the hogwash of Rs 20 Lakh Crore Package deal which ended up as an empty formality. Non-food credit score development is nearly zero and Financial institution credit score Development is lowering from 4% to the baseline ”O”. Banks are simply redepositing the cash again with the RBI.”

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