Urban Mirror Correspondent
New Delhi, July 8: The Lok Gathbandhan Party today criticised the NDA government for massive losses to commercial banks during the last three financial years. The party said it is matter of concern that the banks reported loss of about Rs 70,000 crore due to frauds during three fiscals up to March 2018.
The spokesman of the party said here on Wednesday that according to the data of the RBI the extent of loss in fraud cases reported by scheduled commercial banks for  2015-16, 2016-17 and 2017-18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively, which showed extremely bad management in these banks. The spokesman said with gross advances by these commercial banks increasing from Rs 25.03 lakh crore in 2008 to Rs 68.75 lakh crore in March 2014, the cases of the fraud have also gone up because of lack of effective monitoring system.  The spokesman said stressed assets in the banking system was largely because of aggressive lending practices, wilful default, loan frauds and massive prevailing corruption in the banking sector.   Â
The spokesman said that the NDA government seems to be groping in dark over banking sector crisis following mounting bad loans. The LGP said the NDA government plan for creation of asset reconstruction company (ARC) being dubbed as “bad bank†aims at bailing out the PSBs at the cost of state exchequer. The spokesman said that the NDA government does not have any concrete action plan for the recovery of these huge loans and contain frauds. The spokesman said NPAs have risen from Rs 88500 crore in 2013 to Rs 8. 41 lakh crore in December 2017. The spokesman said there is total mess in banking sector as the CBI has been investigating at least 292 cases of bank cheating and fraud involving 44 public and private sector banks.
The spokesman said while the trust of the people in banks has been completely shaken, the NDA government has so far done nothing to expedite the criminal proceedings against those involved in cheating the banks. The spokesman said huge NPAs are in fact result of high level cheating in collusion with senior bank officers but there is no case against them. The spokesman said lack of transparency, good governance and honesty have finally pushed the sector to the brink of disaster. Criticising the RBI for failing in its supervisory role in this connection, the spokesman said it cannot escape the responsibility. The spokesman said last year alone the CBI was given permission to prosecute 22 bank officers. The spokesman said criminal proceedings against the officers should be speeded up to ensure punishment to these people. The spokesman said regaining the trust of people in the sector is necessary otherwise it will spell disaster for the nation.
