We have mentioned in our posts about the huge loss of the SBI in the quarter ending December 2016, which was unprecedented and happened after 12 years. Now it has been revealed that Bank of India is also in loss for the same quarter to the tune of Rs. 2,341 crore. It had posted profit in the earlier quarter.
The main reasons of the loss are Demonetisation and the increasing NPA. Thousands of crores of rupees are taken as loan by the corporates and the same is not remitted to the bank, which is treated as NPA and written off. In December alone the NPA rose to Rs. 64,249 crore in Bank of India.
If it is bad loans from ordinary people, it is forcefully taken back, even by employing goondas and coercion. But when it is the corporates and high people in society, the bad loans are written off!
And the government is moving to pass the FRDI Bill, which will enable the Banks to take away the hard earned money of the depositors to cover up the losses. The big corporates never keep much money in banks and hence no loss to them. It is the hard earned money of the toiling masses and middle class, which will be confiscated to compensate the NPA.
The fight to save our deposits in the Banks will have to start without delay.