Most PSU banks have reported staggering losses and unbelievable NPA’s for the last quarter which has resulted in sharp decline of their networth and stock prices which are trading at multiple year low valuations at the moment. If you don’t pay your car instalments or monthly EMI’s of your homes for a couple of months, you find recovery people at your doorsteps. However, the same bank gives an ‘Nelson’s Eye’ approach to habitual defaulters who owe the banks thousands of crores only because they are powerful and have political connections. They are even worst than goons and thieves or terrorist who atleast get punished when caught but these white collared criminals party openly without any fear to the shock of the nation.
RBI governor Raghuram Rajan has time and again raised an alarm over this but sadly the young man’s warning has fallen on deaf years which has created an dent and vacuum in our banking system. Why should honest tax payers money be used to bail out banks and defaulters to avoid banks themselves going bankrupt? Finance Minister should address this issue in the coming budget and all mortgaged property of defaulters should be sold in auctions to recover the money. A stitch in time saves nine and the government needs to be tough or our entire country’s economy may go off track which would mean the rule of the goons and muscle men in the days to come if the situation goes out of hand!
S.N. Kabra
(The views expressed by the author in the article are his/her own.)
