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PM Modi Blames Previous UPA Govt For Mounting NPAs

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| September 2 , 2018 , 11:46 IST

On rising NPAs (Non-Performing Assets) in the banking system of the country Prime Minister Narendra Modi on Saturday blamed the previous UPA government.

PM Modi said, “There was a time when a strategy was adopted to obtain loans from banks and that was loan after phone or say phone banking.”

“It was one step for a businessman to obtain a loan and that was 'call the Congress family',” he added.

Citing the stats of NPAs PM had said, “Since Independence to 2008 only Rs 18 lakh crore was given but after 2008 that amount rose to Rs 52 lakh crore in six years thereafter.”

Criticizing the previous UPA government PM also said, “Just a few days after our government came to power, we realised that the Congress had left the nation’s economy on a landmine.”

“The loan given at the behest of one family will soon be recovered,” PM said.

Also Read: PM Modi Launches Country's Largest Banking Network-India Post Payments Bank (IPPB)

A day after PM Modi allegations, former Finance Minister P Chidambaram at the time of UPA government Tweeted, "Let's assume that PM is right when he says that loans given under UPA have turned bad. How many of those loans were renewed or rolled over (that is 'evergreened') under NDA?"

“How many loans and how much that was given after May 2014 have become non-performing assets?," Chidambaram said.

"This question was asked in Parliament but there is no answer so far,” he added.

Concluding the speech, PM Modi had appraised Q1 economic growth of 8.2 percent and said, "Yesterday’s GDP numbers indicate the good health of the Indian economy. India remains a bright spot among global economies and we remain committed to continuing the growth and reform trajectories in the times to come."

PM Modi was speaking at the launch of India Post Payments Bank (IPPB).

NPAs crisis 

The NPAs crisis in the banking can be considered to be getting out of control because banking sector has been going through bad economic times due to rising non-performing assets that already touched Rs. 8.99 trillion which account to 10.11 percent of the total advances at December end 2017.

On August 19 Former Reserve Bank of India governor Raghuram Rajan had been asked by a parliamentary committee headed by BJP leader Murali Manohar Joshi to appear before it and brief on mounting non-performing assets (NPAs).