National spokesperson of Indian National Congress Pawan Khera raised some important issues troubling India’s banking sector. Increasing loans despite rising NPAs is a problem. Then there are the absconding millionaire friends of PM Modi, who are also one of the biggest loan defaulters. NPAs under Modi government has increased by 230% in last four years, by its own admission.
“In March 2014, NPA was worth Rs. 2,51,054cr. By the end of December 2017 NPAs amounted to 8,31,141 cr. That’s an increase of Rs. 5.8lakh crore, under Mr. Modi's watch.” stated Mr. Khera.
The Modi Government’s apathy or deliberate ignorance towards India’s banking crisis has unearthed yet another banking scam. While the news portals have already reported the case of conflict of interest, where ICICI bank’s biggest loan defaulter had invested in ICICI CEO Chanda Kochhar’s company, SEBI, India’s capital market regulator, has given show-cause notice to the bank’s CEO stating that it didn’t adhere to the code of conduct.
In light of the never-ending banking crisis, Congress party poses important questions:
1. Every bank goes through four kinds of audit i.e. Statutory Audit (Looks into bank’s balance sheet), Internal Audit (conducted by bank staff), Concurrent Audit (Audit of Bank transaction) and RBI Inspection. Despite this, the entire fraud escaped everybody’s attention. How did the entire fraud escape the four-stage audit system of Banks?
2. According to latest data, bad loans of private banks have risen by a whopping 317% under Modi Govt - ₹2,51,054cr. in 2014-15 to ₹1, 09,076 Cr in 2017-18. Who is responsible for them?
3. Will the acting Finance Minister, Shri Piyush Goyal, who himself has been guilty of conflict of interest and impropriety, tell us when will the Government will order an investigation asking every CEO of Private Banks to declare if there is any relationship with any loanee?
4. Why did the Government not order a thorough probe when the news reports and whistleblower’s letters to the PM emerged as early in March, this year? What explains the complete silence and the declared ‘non-interference’ of the Modi Government in this saga of ICICI Bank frauds?
Instead of audit, regulations and protection of interests of account holder’s deposits, stakeholders and shareholders, Modi Govt is busy protecting its crony friends.