India
No tolerance for bad loan recovery, particularly from big defaulters:Nirmala Sitharaman
New Delhi: The Enforcement Directorate (ED) has so far attached assets worth Rs. 64,920 crore from 1,105 such defaulters under its scrutiny, according to Finance Minister Nirmala Sitharaman, who stated on Friday that there has been “no leniency” in recovering bad loans from huge defaulters and that the process is ongoing.
The Finance Minister denied the Opposition’s allegation that loans to industrialists were waived under the Modi administration in a series of tweets on X.
The Opposition, which is accustomed to disseminating false information, falsely asserts that industrialists have had their loans “waiver”ed. It’s unfortunate that opposition leaders still can’t tell the difference between write-offs and waivers, even if they consider themselves to be “experts” in banking and the economy. Following the “write-offs” in accordance with RBI norms, banks actively work to recover non-performing loans. Furthermore, no industrialist’s debts have been “waiver”. Banks recovered more over Rs. 10 lakh crore from bad loans between 2014 and 2023, according to Sitharaman.
Approximately 1,105 bank fraud cases have been examined by the ED, and as a result, criminal proceeds totaling Rs. 64,920 crore have been attached. According to her, assets totaling Rs. 15,183 crore had been returned to Public Sector Banks (PSBs) as of December 2023. “The process of recovering bad loans is ongoing and has not been lenient, particularly with regard to large defaulters.”
She said that the balance sheets of both banks and corporations were under stress as a result of the previous administration’s abuse of the banking industry to benefit “cronies” through reckless lending and concealing real non-performing assets (NPAs). “Banks are no longer “NPA-laden nightmares”; instead, they are now “Pillars of Jan Kalyan.” We no longer have a “Twin Balance Sheet Problem,” but rather a “Twin Balance Sheet Advantage,” the speaker continued.
“Our government and the Reserve Bank of India (RBI) implemented a number of measures, such the Asset Quality Review (AQR), that exposed hidden mountains of non-performing assets (NPAs) and stopped the use of accounting gimmicks to conceal them. The shameful legacy of the “Twin Balance Sheet” situation, which we inherited in 2014, was caused by reckless and imprudent loans during the Congress era, according to the finance minister.
According to her, getting bank loans during the United Progressive Alliance (UPA) administration frequently hinged more on strong contacts than a strong business plan. Before authorising these loans, “banks were forced to neglect proper due diligence and risk assessment,” the accuser stated.
According to her, the gross non-performing assets (NPAs) of PSB reached a peak of 14.6% in 2017–18, after banks’ full disclosure of their NPAs for loans made prior to 2014.
She cited the opinions of former RBI governors Urjit Patel and Raghuram Rajan, who have expressed disapproval of the current administration, and claimed that the two leading figures in the Indian banking sector had also brought up the NPA crisis that the UPA regime had caused and had “openly exposed” the extent of the system’s degradation left by the previous administration.
Rajan, who took part in the ‘Bharat Jodo Yatra’ organised by @RahulGandhi, called the NPA crisis of the UPA era a ‘historic phenomena of irrational exuberance.’ Sitharaman quoted Patel as saying that PSB operations under the UPA experienced “a perennial shortcoming on account of bureaucratic inertia and political meddling.”
In order to curb the evergreening of bad loans and uncover hidden NPAs, the RBI launched a comprehensive AQR in 2015 under the leadership of Prime Minister Narendra Modi. By March 2018, total NPAs had increased to Rs. 10,36,187 crore.
Because evergreening caused the majority of NPAs to be concealed on bank balance sheets, the gross nonperforming assets (NPAs) as of March 31, 2014, was Rs. 2,16,739 crore prior to the AQR. In order to restore the health of the banks, the government subsequently implemented a four-point plan known as recognition, resolution, recapitalization, and reforms. Even though banks were recapitalized for Rs. 3.10 lakh crore, as of March 2024, other reforms including the Insolvency and Bankruptcy Code (IBC) had addressed loans totaling more than ₹3.36 lakh crore.
“We tackled responsible lending, stress recognition and resolution, credit discipline, and enhanced governance through our reforms. Professional integrity and independence have taken the role of political meddling in banks. According to Sitharaman, the Banks Board Bureau (BBB) was established to facilitate an open process for choosing non-executive chairpersons and full-time directors.
“Our government issued a framework for the timely detection and investigation relating to large value bank frauds in 2015,” the speaker stated, providing specifics about the reforms made to the banking sector. For quicker recoveries, the Insolvency & Bankruptcy Code was introduced. Property belonging to fugitive economic offenders may be seized under the Fugitive Economic Offenders Act of 2018. The SARFAESI Act was modified to increase its efficacy. Banks have recovered ₹1.51 lakh crores through SARFAESI during the past five years.
The creation of stressed asset management verticals by PSBs for strict recovery, the separation of monitoring from sanctioning roles in high-value loans, the deployment of specialised monitoring agencies for effective monitoring of loans above ₹250 crore, and online end-to-end one-time settlement (OTS) platforms to ensure timely and better realisation were among the measures that helped strengthen banks.
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Monday night’s meeting to assess the security situation in Manipur will be facilitated by Union Home Minister Amit Shah. This is the first high-level gathering of its kind held by the central government since Prime Minister Narendra Modi’s National Democratic Alliance (NDA) was re-elected earlier this month.
Senior representatives from the federal government, state governments, including chief minister N Biren Singh, the army, and other security agencies are anticipated to attend the meeting at 4 p.m., according to people with knowledge of the development.
Manipur has seen fighting between the Kukis and Meiteis communities since May 3 of last year. The fighting has resulted in at least 225 deaths to far and the displacement of almost 50,000 people, the majority of whom are still living in relief shelters.
The previous few weeks have seen new acts of violence in the northeastern state, including the burning of a school facility close to Moreh and the discovery of the beheaded body of a missing individual.
In the Kangpokpi district last week, armed terrorists assaulted the vehicle of Manipur Chief Minister N Biren Singh’s enhanced security team, injuring a security officer and a civilian driver.
Dr. Mohan Bhagwat, the chief of the Rashtriya Swayamsevak Sangh (RSS), stated on June 10 that Manipur has been waiting for peace for a year and that this problem has to be given priority.
Bhagwat emphasised the importance of putting aside political hyperbole and concentrating on the issues confronting the country.
Dattatreya Hosabale, the general secretary of the RSS, called the current violence in Manipur “painful” and “worrisome.”
The Sangh, according to a statement, feels that the only way to solve any issue is “through mutual dialogue and expression of brotherhood in a peaceful atmosphere.”
In an attempt to mediate peace, Shah had earlier travelled to Manipur last month and convened nine talks with leaders of the Kuki and Meitei groups. Despite this, the violence has not decreased.
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On Tuesday, Prime Minister Narendra Modi will travel to Varanasi, his home district in the Lok Sabha. This will be his first trip to the sacred city since taking office as the nation’s third prime minister.
At the historic Kashi Vishwanath temple, PM Modi is expected to engage with farmers and take part in Ganga Aarti.
What is currently known regarding Prime Minister Narendra Modi’s visit to Varanasi is as follows:
For 4.5 hours, Prime Minister Modi will be in Varanasi. At roughly 4 p.m., he will touch down at Babatpur’s Lal Bahadur Shastri International Airport.
Prior to releasing the 17th installment of the Samman Nidhi, which is intended to benefit 2,76,665 farmers in Kashi, PM Modi will attend a “Kisan Samelan.”
In order to commemorate the farmers in the area, PM Modi will meet with 21 of them at the Kisan Samelan and evaluate their products. BJP party officials are preparing for the visit.
The visit of Prime Minister Modi is a source of pride for the people of Varanasi, according to BJP president Dilip Patel. “We are all proud that Prime Minister Narendra Modi has taken the oath of office three times—once as the nation’s prime minister and once as a member of the Varanasi assembly.”
Following his meeting with the farmers, Prime Minister Modi is scheduled to attend the Ganga Aarti at Dashashwamedh Ghat at the Kashi Vishwanath temple.
Vishwa Bhushan Mishra, the CEO of the Kashi Vishwanath temple, stated in an interview that they have a process for the Prime Minister’s visit. PM Modi is anticipated to spend about twenty-five minutes inside the temple.
Ajay Rai, Modi’s previous opponent for the Varanasi seat, criticised him, claiming that Modi was displacing natives with Gujaratis by handing all employment to them. Regarding the purported dearth of factories and development in the city, he questioned Modi.
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India
Sunita Kejriwal is requested by the Delhi High Court to remove Arvind Kejriwal’s court footage from social media.
The wife of chief minister Arvind Kejriwal, Sunita Kejriwal, has been ordered by the Delhi High Court to remove a video of her husband speaking to a Delhi court from her social media accounts. The social media companies have also been ordered by the court to remove posts that contain links to the video.
In addition, the high court has sent notices to all parties involved in the PIL, which was filed by lawyer Vaibhav Singh, alleging that Kejriwal’s appearance before Delhi’s Rouse Avenue Court on March 28 violated the court’s regulations regarding video conferencing.
Among the five people requested to remove the social media posts is Sunita Kejriwal.
The court has set July 9 for the hearing.
On March 28, Arvind Kejriwal personally addressed Special Judge (PC Act) Kaveri Baweja after being brought before the court a second time after being arrested by the Enforcement Directorate in connection with the Delhi liquor policy case.
Sunita Kejriwal reposted the images after the audio and video recordings of the speech went viral on social media.
When films with comparable content are brought to their attention, the Delhi High Court ordered X, YouTube, Facebook, and Instagram to remove them.
The notice on the PIL filed by the Delhi-based attorney Vaibhav Singh was issued by a division bench made up of Justices Neena Bansal Krishna and Amit Sharma.
After he disregarded nine summonses from the Enforcement Directorate, Arvind Kejriwal was taken into custody on March 21 in relation to the excise policy fraud. Subsequently, the Delhi High Court affirmed the agency’s decision.
Later, Arvind Kejriwal petitioned the Supreme Court to overturn his arrest.
In order to enable Kejriwal to campaign for his Aam Aadmi Party during the Lok Sabha elections, the Supreme Court granted him temporary release in May for a period of 21 days.
On June 2, he turned himself in to the Tihar Jail officials per the Supreme Court’s directive.
The former bureaucrat Sunita Kejriwal had spent a great deal of time campaigning for the AAP during the Lok Sabha elections. But the party was unable to secure a single seat in the nation’s capital.
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