NPA mess: PM Modi says UPA left country on ‘landmine,’ blames it over rising bad loans

By: |
Published: September 1, 2018 5:37:57 PM

Launching an attack on the previous UPA government, Prime Minister Narendra Modi on Saturday blamed the Manmohan Singh-led government for rising non-performing assets (NPAs) or bad loans in the banking sector.

India Post Payments Bank launching, IPPB launch, India Post Payments Bank services, PM modi launch IPPB, India Post Payments Bank latest news, India Post Payments Bank latest news in hindiNPA write-offs by Public Sector Banks (PSBs) have more than doubled in the last four years. (Reuters)

Launching an attack on the previous UPA government, Prime Minister Narendra Modi on Saturday blamed the Manmohan Singh-led government for rising non-performing assets (NPAs) or bad loans in the banking sector. Just a few days after NDA came to power, the government realised that the Congress had left the nation’s economy on a land mine, said PM Narendra Modi at the launch of India Post Payments Bank (IPPB) on Saturday.

Meanwhile, NPA write-offs by Public Sector Banks (PSBs) have more than doubled in the last four years, data from Parliament papers show. PSU banks wrote off Rs 49,018 crore in the financial year 2014-15, which increased by whopping 161 percent in the financial year 2017-18 to Rs 1,28,229 crore, data provided by Minister of State for Finance, Shiv Pratap Shukla, in the Rajya Sabha showed.

State Bank of India (SBI) which is country’s largest lender wrote off Rs 39,151 crore in FY17-18, followed by IDBI Bank (Rs 12,515 crore) and Bank of India (Rs 8,976 crore). The NPA write-offs for agriculture and allied services were Rs 7,091 core in FY16-17 and Rs 10,345 crore in FY17-18, data showed.

Earlier today, Prime Minister Narendra Modi launched the India Post Payments Bank (IPPB) at Talkatora Stadium in New Delhi.

The bank in which the government owns 100 percent equity aims to leverage the vast network of the Department of Posts (DoP) that has over three lakh postmen and Grameen Dak Sewaks. IPPB will have 650 branches and 3250 Access Points across the country.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Going PPP way: BharatNet project to get a private sector connection
2Building rural economy key to halt mirgration: Nobel laureate Muhammad Yunus
3Atmanirbhar Bharat not about import substitution; here’s what the Modi’s self-reliant India means