The government’s plan to infuse Rs 83,000 crore into the public sector banks that are under the scrutiny of the Reserve Bank of India’s Prompt Corrective Action (PCA) regime is just another round of supporting the “suited booted” corporates at the cost of the people. Those 11 banks under the PCA were not allowed to lend according to RBI rules, so to circumvent this the government is enabling the banks to get back into lending mode.
The so-called non-performing assets, the Insolvency and Bankruptcy Act etc., are all designed to let off big corporates lightly. It is estimated that 85 per cent of the bad loans are those of the “suited booted” corporates who fatten themselves at the cost of hardworking depositors.
Prime Minister Narendra Modi had said that he would not be corrupt and would not allow others to be corrupt. He would do well to tell the nation why he is not disclosing the names of the fraudsters that were provided to him by former RBI governor Raghuram Rajan. Also, why are serious efforts not being made to recover loans from these fraudsters.
It is equally disconcerting that the All India Bank Employees Association and the All India Bank Officers Association, which call for strikes for their own petty ends, are silent when banks are being looted.
The agenda going forward is clear: The banks have to regain the confidence of investors so that they can raise funds from the capital markets and not be dependent on government.
Equally important is ruthless recovery of loans from the big corporates.
