15 June 2018

Pin It

Banks decide to forget Rs.1.44 Lakh Crore Loans in 2017-18

Banks decide to forget  Rs.1.44 Lakh Crore Loans in 2017-18

Banks give big amounts of loans to business houses majority times without any study of companies financial condition and later on these loans become Non Performing Assets and then banks decide to write off these loans.

Banks say that Banks normally resort to write-offs in the case of loans which are in the doubtful recovery category. “It is technical in nature. It’s a book adjustment. When a bad loan is written off, it goes out of the books of the bank. The bank will also get tax benefits. However, the bank will continue the recovery measures even after the loan is written off,”
Banks usually write off loans which are not recoverable. Borrowers are not informed about the write-off. Once a loan is written off, it’s not counted as NPA.
There is nothing like technical write-off. It’s non-transparent and without any policy.

I never read or heard that any Indian bank has recovered the loan amount which is written off.
If you know it please give the link in comments otherwise accept the real truth that written of bad loans are never recovered from big companies or big businessmen with full interest and full amount.

Write off means in real terms is that bank will never ever try to recover these loans, banks will not trouble the big loan taker as they trouble the farmers who take small loans, many times farmers commit suicide only to avoid the harassment which happens because of bank and bank officials.

One of the reason NPA happens is big bribes amounting crores of rupees are paid and given and taken by high top class bank officials and politicians and result is big loan taker company or business man never repays the loan even if he is very very rich man his loans become NPA.

banks have written off a record Rs 1,44,093 crore of bad loans in the financial year ending March 2018  up 61.8 per cent from Rs 89,048 crore in the previous year.
Of the write-off for 2017-18, Rs 1,20,165 crore loans were written off by public sector banks.

State Bank of India wrote off Rs 40,281 crore in 2017-18, while fraud-hit PNB wrote off Rs 7,407 crore and Indian Overseas Bank Rs 10,307 crore.
SBI alone wrote off Rs 1,23,137 crore over the last 10 years, while Bank of India wrote off Rs 28,068 crore followed by Canara Bank with Rs 25,505 crore and PNB with Rs 25,811 crore, according to ICRA figures.

Private banks wrote off Rs 23,928 crore in the year ended March 2018 against Rs 13,119 crore the previous year — Axis Bank wrote off Rs 11,688 crore and ICICI Bank Rs 9,110 crore. The total write-offs by private banks in the last 10 years amounted to Rs 79,490 crore.

In FY18, gross NPAs rose to around Rs 10.3 lakh crore, or 11.2 per cent of advances, compared to the previous year with Rs 8 lakh crore, or 9.5 per cent of advances. 

NPA is a loss to Indian citizens, NPA is the biggest scam happened and happening in the India
A technical write-off creates non-transparency, destroys the credit risk management system and brings all types of wrongdoings into the system. You must declare how much you are writing off. You are writing off public money. It’s a scandal,”

Reveal the name of persons and companies on the website on banks and declare that those persons are not eligible to take any loan from any banks in India , if any bank is found giving them loan to such people bank license will get cancelled or the bank director or person who paid the loan will go to jail for 25 years jail.

In reality nothing happens, loan is forgotten, the same people again form new companies using new names and again these same people do the same crime of NPA the no. 1 scam and corruption idea which is robbing Indian citizens.

Before blaming congress party remember that BJP also did nothing regarding NPA BJP is following same policy of NPA.

Photo – Toppers in loan write-offs

Photo – 10 years NPA write-offs

Reality views by sm -

Friday,June 15,2018

Tags – India Banks NPA Loan Corruption Scandal


Kirtivasan Ganesan June 19, 2018  

It is sad. It shows there is a lack of mechanism to get back loans. And a strong action front to deal with defaulters.
Okay fine.
In future will there be only good loans?
No. It will not happen.Again and again bad loans will be given. And then waiver of loans.
This is a scam Like Fairfax.