NPAs Due To Loans Granted During Congress Regime—Says Jaitley
As an answer to the recent doubts regarding the NPA due to loans taken before April 1, 2014, Finance Minister Arun Jaitley informed that no loan will be written off.
As per a recent check it was seen that most of the NPAs of banks have risen due to the loans taken before April 1, 2014; the prime cause of this concern is considered to the high amount of lending which has taken place before April 1, 2014. Proper risk assessment was not done before lending money; in most of the cases, there is lack of security backup. This announcement was made by Arun Jaitley at Rajya Sabha on January 2, 2018.
He made it clear to the Upper House at Rajya Sabha that none of these loans will be written off and the borrowers will be liable to make the complete payment. He raised a concern over the aggressive amount of lending that has taken place at that time without keeping any security backup and examining the risks.
He also announced that it is a rumour going around that the banks have waived off Rs. 55,000 crore. While banks have changed the identity of the loans to give tax relief to the borrowers, no exemption has been made to the amount.
When Naresh Gujral demanded a forensic audit of big loan defaulters, Arun Jaitley replied that a fishing enquiry is not required to find out loopholes into a transaction.
While former Finance Minister P Chidambaram raised question on the credibility of the figures, Arun Jaitley informed the NPA amount of public sector banks have risen from Rs. 2.16 lakh crore (domestic) in March 31, 2014 to Rs. 7.33 lakh crore (global) in September 30, 2017. He also asked the ex-finance minister if he has any documents denying the fact.