UPA had hidden the true size of non-performing assets

India Post Payments Bank offers several facilities and benefits common citizens. Here is my speech to mark its laun… https://t.co/HUYuzVSpKy — Narendra Modi (@narendramodi) 1535797889000

PM Narendra Modi blames Congress-led UPA govt for NPA crisis in the banking sector

NEW DELHI: Prime Minister Narendra Modi on Saturday launched a scathing attack on Congress, saying the(NPAs) from the nation and that 12 biggest defaulters, who had been given loans totalling Rs 1.75 lakh crore before 2014, are now facing full force of the law.Speaking at the launch of the India Post Payments Bank here on Saturday, the PM turned the heat on Congress, which has claimed that NPAs have risen under NDA, to say the cumulative burden of NPAs is due to politically-influenced lending during UPA which left behind “land-mines” in the economy.PM used the “naamdaar (dynasts)” analogy to describe the Congress leadership, which he said did not reveal that the NPAs it had claimed were no more than Rs 2-2.5 lakh crore were actually Rs 9 lakh crore. “This was a betrayal of the nation, the nation was lied to,” he said.Modi also lauded the GDP growth of 8.2% during the first quarter announced on Friday, and linked it with the strong showing of Indian athletes at the ongoing Asian Games. “On the one hand, India is winning medals at the Asian Games and giving its best-ever performance, and on the other, the country also got a new medal through the GDP numbers and economic growth figures.”Modi said the government will initiate recovery proceedings against 27 large corporate loan defaulters and that “every single paisa stuck in NPAs will be recovered”. He said measures like recording the passport details of those who have taken large loans and laws to seize property will put pressure on economic fugitives.The PM’s statement comes at a time when the government is pursuing recovery proceedings against absconding tycoons like erstwhile liquor baron Vijay Mallya and diamantaires Nirav Modi and Mehul Choksi who have taken residence abroad to escape investigation and court proceedings in India.Modi reiterated that the state of the economy was precarious when he assumed office, repeating his charge that UPA operated through “phone banking” which led to scams, and bank officials appointed due to political considerations could not say no to sanctioning loans indiscreetly.“From 1947 and till 2008, our banks had advanced Rs 18 lakh crore as loans. But since 2008, and over the next six years, this figure swelled by over two times and reached Rs 52 lakh crore,” Modi said, adding that the philosophy of the then government was, “Tera bhi bhalaa, mera bhi bhalaa (you gain, and so do I).”He said there was a “special tradition” of “phone-banking” that existed during the previous Congress government’s tenure. “Any rich man who wanted a loan would make the dynasts call the bank. The banks would then extend loans worth crores of rupees swiftly. A telephone call from the dynasts was effective, and would override even the banking rules and regulations. This ‘phone banking’ at the behest of Congress and its dynasts resulted in a huge loss for the country.”Modi said as companies started defaulting, banks were forced to extend fresh loans to them as part of debt-restructuring process. The PM said the government has made the system more robust while working out consolidation in the sector and rolling out the Fugitive Economic Offenders Act to attach properties of those who are on the run.The PM said recovery of NPAs is also being carried out through the bankruptcy code and NCLT. “And we are also seeing the results of these ... Earlier, the banks were after them. Now we have made such stringent laws that they are making a beeline for re-payments ... they are petitioning the banks and are being forced to return the money. Banking processes have been strengthened. Investigating agencies are tightening the noose around such defaulters.”He said India Postal Payments Bank (IPPB) is a big outreach to provide ‘door-step banking’ to the poor. The payments bank will accept deposits of up to Rs 1 lakh, offer remittance services, mobile payments, transfers, purchases and other banking services like ATM and debit cards, net banking and third-party fund transfers.