NPAs: Unjustifiable to deny or deprive bank employees and officers of their rightful demand for pay hike

By Gautam Thaker*
Collusion of trinity of the Government, politicians and senior officers of banks over the last four years has dealt a death blow to the banking sector. Because of bad loans to the tune of thousands of crores of rupees, the sector's economic condition appears to have turned serious and pitiable. Mallya-Modi, after having availed of loans of thousands of crores, do not repay but migrate to foreign countries as defaulters. The administration is caught sleeping in preventing or detaining them. Looking at the entire scenario, the picture appears to be bleak.
In order to encourage advances and to augment development, the Government of India pumped in capital to the tune of Rs 80,000 crore in 20 of public sector banks. This fund was allocated under the re-capitalization scheme. The Finance Ministry took this step in the last quarter of 2017-18. Subsequent to this, after the quarterly period, nine of these banks, to whom this capital assistance was extended by the Government, registered a loss to the extent of half the amount of the assistance. In the light of huge losses incurred by banks, 70% of the capital assistance extended in recent times would have been eroded or wiped out.

The table here shows that, although during the last many years, banks have consistently earned operating profits, nearly 70% of hard-earned profits have evaporated due bad loans or non-performing assets (NPAs). Net profits are getting reduced due to bad loans and not due to any reasons attributable to the employees and officers of the banks. Hence it is unjustifiable to deny or deprive bank employees and officers of their rightful demand for pay hike.
NPA figures were Rs 2,29,278 crore in the financial year 2013-14; Rs 2,80,481 crore in 2014-15; Rs 5,41,972 crore in 2015-16, Rs 6,86,750 crore in 2016-17. In December 2017, NPA reached Rs 7,77,280 crore. This goes to prove that nothing else happened except evaporation of capital pumped in by the Government into banks. In the case of 14 public sector banks, as per the fourth quarterly results ending March 2018, consolidated losses reached over Rs 50,000 crore.
One would surely be surprised that Mudra loans have been tied around the throat of the Modi Government like a bell. During the last week, while addressing beneficiaries through a video conference, the Prime Minister declared, "We have come out with the Mudra scheme for offering loans to small scale entrepreneurs. With this, the talent or skill of the common people have received an identity."
But does the Prime Minister know that by June 30, 2017, 39 lakh Mudra scheme accounts have turned into NPAs, whose amount works out to as much as Rs 11,317 crore? Hence, the actual position of the Mudra scheme is this stark reality, in contrast to the praise voiced by the PM. Even more shocking pronouncement than this has been made by the Reserve Bank of India, that during the course of the last five year, there were 23,000 fraud cases, resulting in the erosion of Rs 1 lakh crore from banks. The fraudsters include mega defaulters such as Neerav Modi, Mehul Choksi, Vijay Mallya etc.
In all these scams, names of top officers of banks, their CMDs, etc. have come to light. Looking at the overall scenario during the last four years, this is dismal. Let us hope that by the month of March 2019, the condition of banks would turn around for the better and they would get a new lease of life.
---
*People's Union for Civil Liberties, Gujarat

Comments

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

The cost of being Indian: How inequality and market logic redefine rights

By Vikas Gupta We, the people of India, are engaged in a daily tryst—read: struggle—for basic human rights. For the seemingly well-to-do, the wish list includes constant water supply, clean air, safe roads, punctual public transportation, and crime-free neighbourhoods. For those further down the ladder, the struggle is starker: food that fills the stomach, water that doesn’t sicken, medicines that don’t kill, houses that don’t flood, habitats at safe distances from polluted streams or garbage piles, and exploitation-free environments in the public institutions they are compelled to navigate.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Search This Blog