india

Updated: Mar 07, 2020 03:48 IST

The Congress launched a scathing attack on the government over the moratorium placed on YES Bank, alleging that Prime Minister Narendra Modi and his “ideas had destroyed” the country’s economy.

“No YES Bank. Modi and his ideas have destroyed India’s economy,” former Congress chief Rahul Gandhi tweeted.

Senior Congress leader P Chidambaram too attacked the Bharatiya Janata Party (BJP), alleging that its ability to govern and regulate financial institutions stands exposed. “The BJP has been in power for six years...First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility? Is there a third bank in the line?” asked the former finance minister on his Twitter handle.

He also wondered if the BJP-led government would confirm that YES Bank’s loan book had grown under its watch from ~55,000 crore in FY 2014 to ~2,41,000 core in FY 2019.

Finance minister Nirmala Sitharaman soon hit back, saying “self-appointed competent doctors” created more problems in handling crisis at three banks during the United Progressive Alliance (UPA) government. She pointed to the crisis at Global Trust Bank in July 2004 and United Western Bank in 2006.

“Yes, the Indian banking system has had severe challenges thanks to the way in which the government which existed between 2004 and 2014 handled the matter. I have reasons to put the blame on them,” she said.

Sitharaman questioned Chidambaram’s handling of the crisis at two banks.

“So-called self-appointed competent doctors were in charge when United Western Bank was almost on the verge of collapse in 2006 and was forcefully merged with IDBI,” added the finance minister.