Based on information supplied by the finance minister, we estimate that the total non-performing assets between 2014-15- 2021-22 years amount to Rs 66.5 lakh crore. Of this, the written-off quantum appears to be Rs 14.5 lakh crore. https://thewire.in/business/modi-government-npas-loans-write-off-12-lakh-crore
There are reasons to believe that some Rs 12 lakh crore have been systematically siphoned off from banks in the first eight years of Narendra Modi’s rule – mainly by big corporate borrowers. This was/is done quite ‘legitimately’ by taking loans for units and then getting them written off as unrecoverable non-performing assets (NPAs). The scale of that is 4-6 times higher than the internationally accepted norm. Obviously, such a massive but smooth operation is simply not possible without complete political backing. Every GM, ED or CMD of a bank knows that when he is told by someone representing the core of political power “to lend to X”, he jolly well does it. Down the line, “technical feasibility and economic viability” appraisals are made ‘positive’ and “due diligence” is damned. The few people from this racket that we see in jail now are those who were not protected by political bosses or have run foul of them.
16/01/2023
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