NPAs: Unjustifiable to deny or deprive bank employees and officers of their rightful demand for pay hike

By Gautam Thaker*
Collusion of trinity of the Government, politicians and senior officers of banks over the last four years has dealt a death blow to the banking sector. Because of bad loans to the tune of thousands of crores of rupees, the sector's economic condition appears to have turned serious and pitiable. Mallya-Modi, after having availed of loans of thousands of crores, do not repay but migrate to foreign countries as defaulters. The administration is caught sleeping in preventing or detaining them. Looking at the entire scenario, the picture appears to be bleak.
In order to encourage advances and to augment development, the Government of India pumped in capital to the tune of Rs 80,000 crore in 20 of public sector banks. This fund was allocated under the re-capitalization scheme. The Finance Ministry took this step in the last quarter of 2017-18. Subsequent to this, after the quarterly period, nine of these banks, to whom this capital assistance was extended by the Government, registered a loss to the extent of half the amount of the assistance. In the light of huge losses incurred by banks, 70% of the capital assistance extended in recent times would have been eroded or wiped out.

The table here shows that, although during the last many years, banks have consistently earned operating profits, nearly 70% of hard-earned profits have evaporated due bad loans or non-performing assets (NPAs). Net profits are getting reduced due to bad loans and not due to any reasons attributable to the employees and officers of the banks. Hence it is unjustifiable to deny or deprive bank employees and officers of their rightful demand for pay hike.
NPA figures were Rs 2,29,278 crore in the financial year 2013-14; Rs 2,80,481 crore in 2014-15; Rs 5,41,972 crore in 2015-16, Rs 6,86,750 crore in 2016-17. In December 2017, NPA reached Rs 7,77,280 crore. This goes to prove that nothing else happened except evaporation of capital pumped in by the Government into banks. In the case of 14 public sector banks, as per the fourth quarterly results ending March 2018, consolidated losses reached over Rs 50,000 crore.
One would surely be surprised that Mudra loans have been tied around the throat of the Modi Government like a bell. During the last week, while addressing beneficiaries through a video conference, the Prime Minister declared, "We have come out with the Mudra scheme for offering loans to small scale entrepreneurs. With this, the talent or skill of the common people have received an identity."
But does the Prime Minister know that by June 30, 2017, 39 lakh Mudra scheme accounts have turned into NPAs, whose amount works out to as much as Rs 11,317 crore? Hence, the actual position of the Mudra scheme is this stark reality, in contrast to the praise voiced by the PM. Even more shocking pronouncement than this has been made by the Reserve Bank of India, that during the course of the last five year, there were 23,000 fraud cases, resulting in the erosion of Rs 1 lakh crore from banks. The fraudsters include mega defaulters such as Neerav Modi, Mehul Choksi, Vijay Mallya etc.
In all these scams, names of top officers of banks, their CMDs, etc. have come to light. Looking at the overall scenario during the last four years, this is dismal. Let us hope that by the month of March 2019, the condition of banks would turn around for the better and they would get a new lease of life.
---
*People's Union for Civil Liberties, Gujarat

Comments

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani* India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor* Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas* November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad* On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya.

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad* The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor* Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor* Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.

Search This Blog