Had most public sector banks and a few private sector banks done their jobs diligently, the question of NPA (Non Performing Assets) would never have cropped up. NPAs in some cases are over 20% of the lending amount. Sanctioning authorities never adhered to collaterals and danced to whims of interfering bigwigs, thereby getting the system in this mess. Authorities who scrutinize documents prior to sanctions failed in their jobs badly and dished out hefty loans to non deserving people out of our hard earned deposits thereby resulting in lower deposit interests. Furthermore the auditors failed to raise the alarm bell in time, thereby proving that all were hand in glove in the deals. Writing off loans is one thing but why are these sanctioning authorities not pulled up and made to pay by deducting their gratuity or pension funds? Frequent bailout of public sectors like Air India by different governments without accurate feasibility study added to these yawning debts.
The double whammy is the farmers loan waivers which each state sanctions without accessing as to where the amount is to be adjusted. It’s now a chain reaction from one state to the other. No doubt the farmers are suffering but be sure that these farmers were driven to this state due to politicians and not only climate change. Improper irrigation and water supply, failed food price fixation are part of the problems. Instead of assisting farmers, ministers are busy with BCCI and IPL matches.
Likewise the OROP problems of Defence personals have not been settled. Full compensation of the pay commission has not been absolute. Compensations to widows of defence personnel’s have not been fully implemented.
Whopping and loud advertisements in the newspapers, TV and on the radio only elevate hopes in the poor gullible people. Reality however is another matter. Many thousands still wait and hope to get impounded black money promised by the Government into their bank accounts. Vote bank politics are being played often and people are getting frustrated. Stress, being the gap between dream and reality, is getting bigger by the day and will very soon be attaining a blistering point. Merely raising and adding tax on each and every product or service is not the solution to recover these mounting losses. It therefore is no wonder that the past Reserve bank Governor quit his post.
