Public Sector Banks wrote off ₹ 2.41 lakh Crore between 2014-17

The Reserve Bank of India has directed banks to initiate insolvency proceedings in the case of 12 corporate bodies with outstanding loans of over ₹5000 Crore each and with at least 60% of it declared Non Performing Assets.

The information, contained in a written reply to questions put by Ritabrata Banerjee, suspended from the CPI(M), also admitted that in less than three years after the NDA Government took over, public sector banks had written off as much as ₹2.41 lakh Crore.

The Government, however, declined to name the defaulters, taking refuge in section 45 E of the Reserve Bank of India Act which prohibits RBI from disclosing credit information given by banks.

“The denial mode of the BJP Government continues. The Finance Minister is not even ready to answer whether the non repayment of loans by the countries’ biggest corporate houses is a major factor for the huge accumulation of NPAs in our public sector banks. But the Government’s commitment towards the big corporates are unflinching and the Government is committed not to disclose their name,” said Banerjee.

The disclosure came on a day when news portal The Wire carried a report questioning the conflict of interest between a defaulting company owing public sector banks ₹650 Crore and a company owned by Railway Minister Piyush Goyal’s wife which received unsecured loans from the defaulting company.

Goyal was singed on Twitter as the following tweets would show :

So Piyush Goyal's company not only defaulted on loans worth Rs. 650cr from PSU banks, but despite being stressed, it gave unsecured loans to minister's wife's company. Khoob khao, aur khilao

Every day we come across one or two ghotala from BJP but nobody is getting punished Our chowkidaar is silent not uttering single word about corruption It's seems that whole of BJP people are free to loot our hard earned tax money.

Piyush Goyal was an Ex-Director of Shirdi Industries which raised large amounts of loans & delayed payments. Shirdi’s promoters continually extended unsecured loans through another entity Intercon Advisers, run by Goyal’s wife, despite owing money to PSU banks.