फोरम आफ बैंक पेंशनर एक्टिविस्टस्
Forum of Bank Pensioner Activists
PRAYAGRAJ
कामये दु:खताप्तानां प्राणिनाम् आर्तिनाशनम् ।
Dear Activists,
WAIVER, WRITE-OFF PROPAGANDA
AIMED AT TARNISHING THE
IMAGE OF PSBs
68000+ Written Off
◆ The politicians do not hesitate or feel ashamed to drag PSBs to settle their score, by a calibrated propaganda, either in controversies or use & abuse it's resources for furtherance of their political advantages. Believe it.
◆ That's why after nationalization in 1969, it was thought to bring in place some system that might ensure autonomous status of PSBs to ward off politicization of Banking administration or resources, but it was given a thrash by Indira Gandhi rule itself.
◆ Unions, who represent collective voice of entire working fraternity, have had not only turned their eyes from glaring instances of government interferences, uses & abuses, but they stood as silent spectator to these situations, whenever occasions did arise.
◆ RBI doesn't grant any loan to trade, industries or individuals directly or indirectly through any Banks. So, the question of write offs by RBI has no legs.
◆ Government of India, despite ownership status in PSBs, has no power to grant any loan or advance to any trade, industry or individuals from its authority. As such government too have no authority or role in sanctioning, waiving or writing off any loan.
◆ All loans and advances to trade, industries or individuals are sanctioned by respective Banks, under their schemes, by the different authorities as per delegated powers by respective Banks' Boards.
◆ RBI formulated Prudential norms called 'Income Recognition & Asset Classification' (IRAC) norms. Banks are under regulatory obligation to follow IRAC norms strictly. All decisions in regard to NPAs are taken within the framework of IRAC.
◆ If someone seeks informations under RTI, RBI furnishes that. And, in instance case, such information is portrayed as 'waiver or write offs by RBI' or by 'Modi Govt'. Thus, it's white lie. Just giving consolidated information can't be attributed as done by RBI or by Govt.
◆ In instant case RBI has given the informations as they had from Banks under CRILC data base which maintain data of advanced of Rs.5 crore & above & AIFIs report 30.9.2019.
◆ We must recollect that in Banking there was an era of 'Phone Banking' operated from North & South Blocks, New Delhi, where from Manmohan Singh, then PM & Chidambaram, then FM were operating. These accounts are byproduct of said phone banking. Blame lies there, and not here as being tried to be pinned.
◆ Banks were under tremendous pressure from 2008-12 to lend to boost GDP. In 3/4 years, Banks advances jumped from around 18 lakh crore to around 54 lakh crores, never such phenomenal growth in world banking history. It was phone banking era, where loans were just a piece of cake, being doled out to henchmen by then govt.
◆ Look to Modus-operandies: firstly wreckless financing was done at behest of then govt to unscrupulous elements, multiple time of actual project costs, through inflated project reports in the name of boosting GDP.
●Such advances were made to fail deliberately.
●Then govt further in the hallow name of economic disasters, PC and MMS formulated Waiver and Restructuring policy to bail out their henchmen.
● All such erring borrowers reaped interest rates reduced, waiver of interest from back date, rest loan restructured with further repayment schedule on reduced rate of interests.
●In this scheme Banks had to pay from their income, reduce interest rates without single penny in recovery in NPAs.
●Bad advances were further made good advances. Charisma!!
●But, bad is always bad, so in future dates all such restructured loans failed & became new NPAs.
◆ Understand what was 'exit' or 'bail out' plan and for whom? If really, Rahul wanted to know, he should have got it from MMS/ Chidambaram, instead asking from FM!
◆So, the NPAs what surfaced in FY 2014-15, 2015-16, 2016-17, 2017-18 have a long trail to those who are questioning today.
◆These gigantic NPAs brought PSBs to halt and at the brink of collapse. They were not capable of further lending.
◆Modi Govt infused massive fresh Capital in PSBs to the tune of Rs.3 lakh crores. Given a look to total capitalization from Nationalization, 1969 to early 2014, it shows, Modi govt made more capitalization to save PSBs from financial catastrophe and collapse than total capitalization during 1969-2014.
◆Banks' loans or advances, if not repaid, it constitutes civil offence. Banks can't pick up any borrower and put him behind bar. Rule of law doesn't permit it.
◆ Debt Recovery Tribunals have been of little relief. Modi govt immediately after coming in power made Insolvency & Bankruptcy Code-2016, a long awaited legislation.
◆ IBC is doing well and many erring defaulters have been put behind bar. Look to list of resolve cases and the pressure IBC mounted on delinquent borrowers to pay their dues by selling their assets.
◆ Prudential write offs are aimed at reducing NPAs in Balance Sheets and such write offs are of accounts where 100% provisions are already with the Banks.
◆ Write offs do not mean that recovery processes are closed. Be it through courts or other means, Banks continue their efforts. Recoveries in such accounts directly go in profits. That's why it is called technical write off.
◆ Most important fact to understand, Banking is a commercial entity involved in money lending businesses, a risk prone task. NPAs are professional hazards, forget Banking without it.
◆ Remember: rampant political interferences in PSBs administration, use & abuse of resources was unabated in Congress rules. This Rule inflicted ills of loan melas, waivers, write offs, OTS, restructuring etc quite detrimental to credit management. It was undue interference in credit management. This Rule inculcated unethical behaviour among borrowers & developed such unethical tendencies as their legitimate right.
◆ Take PSBs now greatly free from govt interferences and abuse of authority. It's top management perception. Banks are under professional recast.
◆ Bank men shouldn't fall prey of malicious propagandas let loose by whosoever. Rather, it's duty of banking fraternity to dispense correct informations in public domain and expose those who are out to tarnish the image of PSBs.
◆ PSBs constitute the assets of Nation and they are the custodian of National Savings. They are premier Institutions. Bank men are biggest stakeholders, because they run, superwise & manage Banks. Therefore it is they to take care of its status.
(J. N. Shukla)
National Convenor
1.5.2020
9559748834
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