Congress is responsible for India's non-performing assets crisis: BJP leader Amit Malviya

New Delhi [India], October 28 : In a Twitter thread, Amit Malviya, the BJP's IT Cell head, has hit back at Congress leader Mallikarjun Kharge, who had accused the BJP government of taking India's economy to "Defaulter Kaal".
He posted on X, "The Congress would have us believe that the BJP government is responsible for the NPA crisis, but former RBI governor Raghuram Rajan, an ally of the Congress, was unambiguous in ponting out that many of the problematic loans originated during Congress-led UPA era. Banks were under tremendous political pressure to lend and they were so reckless that they lent hundreds and thousands of crores to unworthy companies and businessmen close to the Congress, without basic due diligence or adequate collateral. During Congress's rule, these bad loans were not 'Recognised" and were kept hidden using various accounting trickery."
Malviya said that the Congress party is the architect of India's NPA crisis and that the BJP government has taken decisive steps to resolve it. He said that the BJP government has injected over Rs 3 lakh crore into public sector banks and strengthened Debt Recovery Tribunals (DRTs). He also said that the government has passed the Insolvency and Bankruptcy Code to provide a strong legal framework for better debt recovery.
"It was discovered only when the Asset Quality Review (AQR) was initiated in 2015. Modi government's 4R's strategy of Recognition, Resolution, Recapitalisation and Reforms led to the resolution of these hidden NPAs. We bravely and honestly confronted and solved the NPA problem, rather than adopting Congress's tactics of concealing it. Over Rs 3 lakh crore was injected to fortify the public sector banks. Strengthening Debt Recovery Tribunals (DRTs) and passing of Insolvency and Bankruptcy Code: to provide a strong legal framework for better debt recovery, was done. Strict measures against willful defaulters were taken. Economic Fugitive Offenders Act 2018 was passed to deter wilful defaulters and economic offenders. And about those write-offs? It is a mere accounting and regulatory necessity. Write-offs are NOT waivers. Banks pursue the cases of defaults in legal forum for recovery." he added.
Malviya said that the NDA government's transformative steps have led to every public sector bank now being in profit. He said that profits have soared from Rs 36,000 crore in 2013-14 to Rs 1.04 lakh crore in 2022-23. He also said that net NPAs of the banks are around 1%, the lowest in 15 years.
Banks have recovered more than Rs 10 lakh crore in the last 9 years. Due to the NDA government's transformative steps in the last 9 years: - Every public sector bank is now in profit. SBI was the 'Most Profitable Company' in India (Q1-FY 2024). - Profits soared from Rs 36,000 crore in 2013-14 to an astounding Rs1.04 lakh crore in 2022-23 (>3x). And talking about NPAs? Net NPAs of the Banks are around 1 per cent, the lowest in 15 years. Banks' gross non-performing assets (GNPA) ratio continued its downtrend and fell to a 10-year low of 3.9 per cent in March 2023. -
"Provisioning Coverage Ratio (PCR) increased from 58.48 percent in FY 2014 to 90.72 per cent in FY 2023, which reflects the ability of the public sector banks to withstand asset quality pressures. "The Twin Balance Sheets", instead of being a liability, have now become an asset. So, before hurling baseless accusations, the Congress should perhaps reflect on their own legacy. The Congress establishment, under whose watch these bad loans increased, is now trying to evade responsibility. The irony is palpable. In 2024, the people of India will indeed reply, but with a vote of confidence for the BJP that took decisive actions, rather than the Congress and its alliance partners that created the mess," he added.
Meanwhile, Kharge accused the BJP of helping economic offenders and imposing a backbreaking price rise.
In a statement, Mallikarjun Kharge has accused the BJP government of helping serious economic offenders like Nirav Modi, Mehul Choksi, Vijay Mallya, and Jatin Mehta loot and scoot from India. He has also accused the government of imposing backbreaking price rise on the people.
"Your Govt is taking India's Economy to 'Defaulter Kaal' ! Distributing "Muft Ki Revdis" to cronies and demolishing the savings of the common people has been your only agenda. Is it not true that dues from wilful defaulters rose by a whopping Rs100 Crore per day since March 2019 ? Has your Govt not written off Rs 14.56 lakh crore NPAs in last 9 financial years ? " Kharge posted on X.
Kharge said that while the BJP government refuses to waive off loans of desperate farmers, it obliges to write off loans of moneybag cronies in a jiffy. He said that the people of India will reply to each and every assault that the BJP government has made on the economy in 2024.