CN&V Correspondent
Lucknow, May 27: The Log Party said that banking sector, which has long been facing acute crisis, has been further pushed to disaster due to spread of pandemic in the country. The Log Party said the worsening crisis has caused scare among the people and the central government should take measures to restore confidence among the customers.
The spokesman of the Log Party said here on Wednesday that NDA government’s assurance before the outbreak of Covid-19 about improvement in health of banking sector has failed the test of scrutiny and now the people are feeling jittery about the prevailing situation in this sector. The Log Party said it amply indicated that banking sector crisis is far from over, as being projected to attract investors.
The spokesman said that banking sector has virtually collapsed because of fraudersters looted banks over the years. The Log Party said there is sharp rise of 72% in financial scandals in banking sector which indicated that the situation has assumed serious dimension. The spokesman said that while overall frauds in baking system accounted for Rs 23,933 crore in 2016-17 with 5,917 fraud cases, the maximum 2526 cases were advances related and 2059 were cyber frauds. The Log Party said that such an enormous loot has given ample indication about total administrative failure and prevailing mismanagement in collusion with bank officers, politicians and bureaucrats.
The spokesman said banking sector frauds increased sharply over the years due to large value case especially major PNB fraud of Rs 14000 crore involving diamond merchant Nirav Modi and his uncle Mehul Choksi in the jewellery sector. The spokesman further said a large number of banking frauds have also led to an increase in the NPA (non-performing assets), which had increased to Rs 10.3 lakh crore as of March, 2019. The spokesman said such a massive bank fraud over the years was not possible without connivance of the politicians and bank officers. The spokesman said there was an urgent need to control the situation with stern punishment to the accused people.
