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The Congress has alleged that the losses suffered by public sector banks (PSBs) in the last quarter were a result of the Centre’s financial mismanagement.
The party also questioned the reported move to make insurance giant LIC acquire IDBI Bank, while alleging that it was to hide the economic mayhem of failed “Modinomics- Jaitleynomics”.
The Congress’ communications in-charge Radeep Singh Surjewala said the Narendra Modi government’s financial anarchy continued unabated. “The fourth quarter losses of Indian banks for 2017-18 are touching an astronomical ₹90,000 crore. NPAs, which were ₹2.63-lakh crore in 2013-14 have increased to ₹10.30-lakh crore,” he said.
He added that IDBI Bank was the worst performing public sector bank with Q4 losses at ₹5,663 crore and gross non-performing assets (NPAs) of ₹55,588.26 crore. “It has a bad loans ratio of close to 28 per cent,” Surjewala said, adding: “To cover up its mess, Modi government is now jeopardising the hard-earned money of 38 crore LIC policy-holders by forcing it [the LIC] to purchase the rapidly sinking IDBI Bank, instead of investing money in bank recapitalisation,” he said.
The Congress leader said various scams had plunged the banking sector into a deep crisis. He alleged criminal conspiracy in allowing certain partners of the Faridabad-based SRS Group to leave the country despite whistle-blowers exposing their involvement in alleged money-laundering worth hundreds of crores parked in Dubai through shell companies.
“The modus operandi of ‘loot and scoot’, ‘dupe and deceive’, under the watch and alleged connivance of the [Narendra] Modi government, however remains the same. Shockingly, this time it is the State Bank of India, which is India’s largest public sector bank which is at the focal point of this massive fraud,” Surjewala said.
“Why has the PMO, Finance Ministry, the RBI, CBI, SEBI [Securities and Exchange Board of India], SFIO [Serious Fraud Investigation Office], ED [Enforcement Directorate], CVC [Central Vigilance Commission], State government, banks and other government agencies not taken cognizance of a scam worth ₹6,978.72 crore? Why have 16 banks not referred the matter of huge default by the SRS Group to CBI/ED/RBI and other agencies, despite all of them becoming NPAs at the end of FY 2015-16?” he asked.
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