Tag: Prime Minister Modi

  • Bad Loans During UPA Stifled Credit Needs Of Startups And Small Businesses: Sitharaman | Economy News

    New Delhi: The bad loans crisis during the Congress-led UPA tenure stifled the credit requirements and dreams of crores of aspirational Indians who wanted to establish start-ups and expand small businesses, alleged Finance Minister and senior BJP leader Nirmala Sitharaman.

     In a long thread of posts on her X timeline, she launched an attack on the Congress party and its allies, alleging that the UPA government chose to favour dynasts and cronies while leaving a large chunk of Indians in the lurch.  (Also Read: SEBI Bans THESE 5 Entities From Securities Markets For 3 Years: Check List)

     “When the Modi government took charge, these cronies fled, fearing prosecution,” she wrote in her four-part X post, in an apparent reference to fugitives that have flown out of the country since Prime Minister Narendra Modi came to power. (Also Read: Stock Market Holidays June 2024: BSE, NSE Trading Closed On THESE Dates- Check Here)

     Further, targeting her party BJP’s principal Opposition party Congress, Sitharaman said those who take credit for the nationalization of banks kept the nation’s poor and middle class unbanked for decades “while their leaders and allies climbed the ladders of corruption.”

    According to her, it was under PM Modi that the banking sector turned around for the better. She said that it is her government that brought in comprehensive and long-term reforms. “Our reforms addressed credit discipline, recognition and resolution of stress, responsible lending and improved governance.”

     She said her government “replaced political interference in banks with professional integrity and independence.” “Our govt, in 2015, issued a framework for the timely detection and investigation relating to large value bank frauds.”

     She listed out how her government brought in the Insolvency and Bankruptcy Code (IBC) for faster recoveries; the Fugitive Economic Offenders Act of 2018 was enacted for the seizure of fugitive economic offenders’ property.

     Specialised monitoring agencies were deployed for effective monitoring of loans above Rs 250 crore. Sharpening her attack further, she said the Opposition is habituated to spreading lies. She adds that the Opposition wrongly claims that there has been a “waiver” of loans given to industrialists.

     “Despite claiming to be “experts” in finance and economy, it’s a pity that opposition leaders are still unable to distinguish between write-offs and waivers. After the ‘write-offs’ as per RBI’s guidelines, banks actively pursue the recovery of bad loans. And, there has been no “waiver” of loans for any industrialist. Between 2014 and 2023, banks recovered more than Rs 10 lakh crores from bad loans.”

     She put out figures that the Directorate of Enforcement (ED) has investigated around 1,105 bank fraud cases, which resulted in the attachment of proceeds of crime amounting to Rs 64,920 crores. As of December 2023, assets amounting to Rs 15,183 crores have been restituted to the government-owned banks.

     “There has been no leniency in recovering bad loans, especially from large defaulters, and the process is ongoing,” she assured. As per the finance minister, the ‘seeds’ of the NPA crisis were sown during the Congress-led UPA era through ‘Phone Banking’ – a term used to allege that politicians of those times had favoured businesses while disbursing out loans.

     “…loans were given to undeserving businesses under pressure from UPA leaders and party functionaries,” Sitharaman wrote. “Under the UPA, obtaining loans from banks often depended on powerful connections rather than a solid business proposition. Banks were forced to neglect proper due diligence and risk assessment before sanctioning these loans. This led to a massive increase in Non-Performing Assets (NPAs) and institutionalised grafts.”

     “Many banks hid and avoided reporting their bad loans by ‘evergreening’ or restructuring them,” she added. Against that backdrop of high bad loans and the health of banks in disarray, banks had then become reluctant to lend to new borrowers, especially MSMEs.

     “From having a ‘Twin Balance Sheet Problem’, we now have a ‘Twin Balance Sheet Advantage’,” she said. During 2023-24, Public Sector Banks recorded the highest-ever aggregate Net Profit of Rs 1.41 lakh crore, almost four times higher than Rs 36,270 crore in 2014.

     Net NPAs of public sector banks declined to 0.76 per cent in March 2024 – from 3.92 per cent in March 2015, and from a peak of 7.97 per cent in March 2018. Their gross NPA ratio declined to 3.47 per cent in March 2024 – from 4.97 per cent in 2015 and from a peak of 14.58 per cent in March 2018. 

  • PM Modi leaves for Japan on two-day seek advice from 

    Through PTI

    NEW DELHI: High Minister Narendra Modi on Sunday night time left for Japan on a two-day seek advice from to wait a summit of the Quad leaders which is geared toward additional bolstering cooperation some of the member international locations of the influential grouping and discussing tendencies within the Indo-Pacific area.

    In a observation, Modi mentioned the summit will provide a chance for the leaders of the 4 member international locations to study the growth of the Quad projects.

    ALSO READ: Forward of Quad summit, China says US’ Indo-Pacific technique ‘certain to fail’ 

    But even so Modi, the summit in Tokyo on Might 24 might be attended via US President Joe Biden, Eastern High Minister Fumio Kishida and Australian top minister-elect Anthony Albanese.

    “A seek advice from to additional the ‘pressure for world excellent’. PM @narendramodi emplanes for Tokyo. Quad Leaders’ Summit with PM @AlboMP of Australia, PM @kishida230 of Japan, and @POTUS @JoeBiden awaits,” Exterior Affairs Ministry Spokesperson Arindam Bagchi tweeted.

    Modi may even cling separate bilateral conferences with Biden, Kishida and Albanese at the sidelines of the summit.

    “In Japan, I will be able to additionally take part in the second one in-person Quad Leaders’ Summit, which can provide a chance for the leaders of the 4 Quad international locations to study the growth of Quad projects,” Modi mentioned in his observation.

    “We will be able to additionally change perspectives about tendencies within the Indo-Pacific area and world problems with mutual pastime,” he mentioned.