Government following soft option of write-off of NPA instead of forcing corporates to pay, thus making people to pay

By Devidas Tuljapurkar, General Secretary, Maharashtra Bank Employees Federation (MSBEF)

The data published by RBI on Movement in Non-Performing Assets, NPA (Table IV.8) tells that the recovery of bad loans is only Rs. 1.18 lakh crore while write-off of loans is much higher at Rs. 2.08 lakh crore thus to show that Gross NPA are reduced though addition to NPA during the year is Rs. 4.00 lakh crore. All the claims of the government are far from truth.

The Table IV.10, given by RBI deals with the recovery in NPA through various modes which shows that the rate of recovery has gone down from 22% to 14.1% & within that, the recovery rate through IBC, Lok Adalat, DRT has gone down while SARFAESI Act has gone up. It is not known at what sacrifice the all this recovery has come.

As it appears, only the soft option of write off is being followed to create an illusion that all is well in the economy & financial sector.


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