Government Lacks Road Map to Contain Bank’s NPA

Sunil Dang, Editor-in-Chief THE DAYAFTER

BY SUNIL DANG

After one year in office, the US President Donald J Trump has finally been able to implement some of his agenda. It got reflected when the Supreme Court of the US allowed Trump administration to stop people from six majority-Muslim countries from entering the United States. After getting approval to his right wing vision, the strongest democracy of the world is now ready to flex its muscle directly on the Jerusalem matter which most of his predecessors tried to avoid. Not just that, Trump has decreased the US aid to the UN by $28.5 crore immediately after the UN vote going against the US on Jerusalem. So, by putting Jerusalem matter to the UN, Trump has hit multiple sparrows with single arrow as he has on multiple occasions voiced his lack of appreciation for multilateral organisations such as the UN. He indicated to the world that he wants immediate and fast track solution to the Jerusalem matter and the solution should be in favor of Israel. He also indicated that countries getting US aid for various reasons, should be prepared in future to follow its decisions on global issues else they will have to face the same consequences that Pakistan is facing today. So, it would be interesting to see how Russia, EU and China react.

In 2G case, the CBI court has acquitted A Raja and Kanimozhi. However, I am unable to understand why Congress party is celebrating this verdict because when this scam surfaced, it was BJP which was the major beneficiary of this scam. And now, when this verdict has been delivered, once again it seems that it would be BJP that would emerge major beneficiary as news of DMK and BJP coming closer has started to surface. But, the verdict has certainly put doubt into the minds of business and investment fraternity and hence petty politics over 2G may hurt India in long-term perspective. Now, it would be interesting to see whether DMK supports major bills of the central government in the Rajya Sabha as its foe AIADMK has been doing or they would take some time.

The ‘party with difference’ has won both Himachal Pradesh and Gujarat Polls and the BJP has plenty to joy over these verdicts, however, psephologists have different view altogether. They have buzzed the alarm for BJP for 2019. But, RK Nagar poll result has revealed that legislators may be with OPS-EPS camp, but public sentiment is with Sasikala and TTV Dhinakaran and hence OPS-EPS have failed the ‘Amma Legacy’ test. But, RK Nagar poll erdict would work as morale booster for the opposition DMK as it would further put AIADMK into the legacy battle paving way for its possible alliance with BJP in 2019 Lok Sabha Polls. However, I won’t be astonished if the ED and other government machinery shifts its focus on states like Karnataka, MP, Rajasthan and some other states that are not governed by either BJP or NDA ally else what could be the reason for putting Lalu behind the bars and ‘Srijan Scam’ still not getting any notice to such institutions.

In 2013, Public Sector Banks had the NPA of Rs 2,33,000 crore which has went up to Rs 2,80,000 crores. But, I am not surprised by this surge in PSB NPA, I am surprised by the decline in NPA recovery. In 2013, rate of recovery in Public Sector bank NPA was at 22 percent which has now come down to meager 9 percent. This data released by central government indicates that current Finance Ministry is doing lip service when it talks about containing NPA because it don’t have any concrete road map for controlling the rise in NPA and how to recover the foregone revenue which is essentially hard earned public money. It’s high time for the NDA government to comply the parliamentary Committee and Supreme Court’s ruling to name shame the bank loan defaulters, instrumental in rise of this NPA.