Tag Archives: NPA

NPA of Public Sector Banks increased to Rs. 2.6lakhs

23 Monday Nov 2015

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It is almost incredible. The 19 Public Sector Banks in the country are having Non-Performing Assets (NPA) of Rs. 2.6 lakhs as in September 2015. NPA means bad loans which are not repaid so far. The NPA in March 2015 was Rs. 2.3 lakhs.

These bad loans are mainly given to corporates and big business. The name of almost every big corporate house and big business concern are in the list of defaulters. They are given hundreds of crores of rupees as loan and they are not repaid. While, the banks take strong action to recover amount from the common man who takes loan, no such action is taken against  the big fish.

On the one side the banks are crying about NPA, but again more and more such loans are given, resulting in the increase of the NPA.

NPA of Public Sector Banks reaches Rs. 2.67 lakh crore

21 Tuesday Jul 2015

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As per the reply given in the Parliament by Minister of State for Finance, Jayant Sinha, the NPA( Non-Performing Assets)or the bad loans of the Public Sector Banks have reached Rs. 2.67 lakh crore by the end of March 2015. Last year it was Rs. 2.16 lakh crore.

The interesting fact is that these bad loans are mostly loans taken by the big corporate and business houses and have not been repaid. Due to their influence on the government and political parties, strong action is not taken for recovery.

At the same time, extra-special efforts are being made to recover from the common people and legal action is taken. But not in the case of big guns. Even if some action is taken, they defend it with Senior Advocates, who manages to stop and delay action.

The Bank Unions have been demanding for the recovery of these bad loans from the big business and corporates, but without results.

In India, big guns are always above the law of the land.

 

Why Government is not naming and shaming the corporates with NPA in Banks?

05 Sunday Apr 2015

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The Central Government has  the names of corporates, who have taken loans from banks and not  remitted back, which is treated as Non-Performing Assets (NPA). This comes to about Rs. 2.60 lakh crore. Why the government is not naming them and put in the public domain? It is not that these corporates do not have funds to repay, but are escaping from payment through one excuse or other. The Public Sector Banks are the worst hit. Even it can be doubted whether there is any conspiracy between the banks and the corporates.

The Left Party leaders Coms. Sitaram Yechuri (CPIM) and D.Raja (CPI) in a Seminar in Chennai demanded that the names of these defaulter corporates should be published.

The government should act immediately and name and shame the defaulters and collect the due amount from them.

 

Rs. 34,000 crore written off by PSU Banks

03 Wednesday Dec 2014

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The Public Sector Banks, including SBI, have written off Rs. 34.409 crore of bad of NPA (bad loans)during financial year 2013-14. This includes one time settlements also. This comes to about 34.05 % of the Non-Performing Assets. In 2012-13, Rs. 27,231 crore were written off.

These bad loans are mainly loans given to the corporates and  big business and not returned. If common people take any loan and is not paid back, coercive measures are taken and the loan got returned. But, when it is the case with the corporates and big business, it is written off. No action is taken against them. Is this justice? One rule for the rich and powerful and another for the common people? This should be exposed.

The Indian Banks Association is denying the demands of the Bank Employees’ Unions for wage revision with adequate fixation stating that there is no money. But they can simply write off Rs. 34,000 crores and similar amount every year, closing the loans of the rich and powerful without getting it back?

Government ignores health of PSU Banks, No CMDs, NPA increases

27 Monday Oct 2014

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It is well known that the government is not interested in improving the PSUs, Banks included. It will advise for the improvement of services, but at the same time will do every thing to demolish these PSUs. BSNL, MTNL cases are well known to all.

It is the same with the PSU Banks. There are 20 PSU Banks, in addition to those affiliated with SBI. Out of these six banks are working without any CMD. These are Bank of Baroda, Canara bank, Indian Overseas Bank, Oriental Bank of Commerce, Syndicate Bank and Bank of India.

The NPA (Non-Performing Assets), meaning bad loan, are increasing in all the PSU Banks.There is no strong action to get back the amounts from the corporates, big business etc. who have taken the loan and are not repaying. The top management is fully responsible for giving loans with out proper security etc.

The Unions in the PSU Banks are exposing and protesting against these NPAs, but neither the Bank management nor the government is taking any serious remedial measures.

5.65 lakh crore bad loan of PSU Banks

12 Saturday Jul 2014

Posted by in General, Neo-liberal policy

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It is stated that the NPA (Bad loan) of the PSU Banks have reached 5.65 lakh crore. These are mainly the not-refunded loans taken by the corporates and big business. The banks write off thousands of crores of NPA every year with out taking any punitive action against the defaulting corporates and private companies.
It is time that the government and the bank managements take strong action and criminal cases against these big sharks eating the hard earned funds of the common people.

NPA of Banks – One Corporate House owes Rs. 1,22,000 crores !

29 Sunday Jun 2014

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It has always been known that almost all the major corporates have not returned thousands of crores of rupees they have taken as loan from the banks. These are treated as Non-Performing Assets (NPA) and written off later. The hard earned money of the people were being looted by these corporate houses.
Now, senior BJP leader and former Communications Minister Arun Shourie has stated that one Corporate House in India owned Rs. 1,22,000 crore and another Rs. 58,000 crore to the banks, which they have taken as loan! This will be true. In the same way, there will be thousands of corporate houses, which have been cheating the banks.
Why the government and the Bank Managements are sitting as silent spectator? They should act immediately and take necessary strong action to get back the amounts to the Banks, which are mainly the PSUs.

Congrats to Public Sector Banks and their Workers for sustained growth

21 Friday Feb 2014

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Whatever the government may say about the Public Sector Banks, it is on record that there is steady growth. Despite the thousands of crores of bad loan/NPA, the profit of the banks are on the rise. The following statistics for the last few years show the steady growth of the PSU Banks.
Year Profit in crores
2008-09 Rs. 33,514
2009-10 Rs. 38,225
2010-11 Rs. 43,250
2011-12 Rs. 47,483
2012-13 Rs. 48,700

The bad loans which are given the label ‘Non-Performing Assets’ (NPA) have also increased. From Rs. 39,030 crore in 2007-08, it has increased to Rs. 1,64,461 crore in 2012-13. The defaulters are mainly the big corporates and the big business. You can see the name of all the big corporates in the defaulters list. A leader of the Bank Employees has stated that about 50% of the bad loans are by the 30-40 top corporates of the country and the central govt. is supporting them by not taking any action against them. Despite these huge bad loans the PSU Banks are in profit.
Hearty congratulations to the PSU Banks and their workers!

Bank Employees Strike- FM Statement hollow

12 Wednesday Feb 2014

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The statement of the Finance Minister P.Chidambaram that bank profits could not be used only to enhance salaries of employees, but must be used for expansions is nothing short of ridiculing the bankmens’ strike and confusing the people.
The employees are eligible for wage revision after every 5 years and the United Forum of Bank Unions have demanded only fully justified rise in wages. It is the Bank Association which is taking an unjustified stand.
If the Finance Minister is sincere for the expansions, why thousands of crores of rupees taken loan by the corporates and big business is being waived as NPA and making huge losses to the Banks? The Government and Banks should have taken strong stand and collected all these big loans and helped the banks for expansion. In the case of common people, the Banks don’t waive loans, but in the case of corporates a soft stand is taken and loans waived. It is only when the employees demand for wage rise, all these grand advices comes from the Ministers and those in power.

NPA (Bad Loans) of PSU Banks reached Rs. 1,64,000 crore!

05 Thursday Dec 2013

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According to the reports, the Non-Performing Assets (NPA) or the loans taken from the banks and which have not been returned, of the Public Sector Banks has reached a huge Rs.1.64 Lakh crore in 2013. This is an increase of more than four fold increase during the last 5 years. The NPA was Rs. 39,000 crores in 2008.
Almost all the big corporates seem to be in the list of offenders. Many of them have taken hundreds of crores of rupees and failed to pay or did not pay.
According to the list of corporates who did not pay back the loans taken published by the All India bank Employees Union, Vijay Mallya’s King Fisher tops with Rs. 2,673 Crore dues.

The Bank Unions have also demanded that the Banks should publish the list of all offenders who did not repay the loans. They also demanded that inquiry should be ordered whether these loans were sanctioned as per rules or were given in violation of the existing rules and fix the responsibility.

The favour shown to the corporates and private big business, especially after the implementation of the neo-liberal policies have resulted in such distortions and violations of laws in many areas, and banking sector is not any different.

The Government and the Bank authorities should take immediate action to recover the amounts which will strengthen the banks and put an end to the loot of the public money through the bad loans.