A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained ‘past due’ for a specified period of time. In simple terms, an asset is tagged as non-performing when it ceases to generate income for the lender.
The Congress on Thursday alleged that non-performing assets of public sector banks have increased by Rs 5.05 lakh crore in 42 months of the NDA government and asked whether Prime Minister Narendra Modi is ready for a probe into it by an independent agency.
Addressing a joint press conference, AICC general secretary in-charge of Gujarat Ashok Gehlot and Congress communications in-charge Randeep Surjewala said the increase of NPAs in 3.5 years of the BJP government is the “biggest scam”.
“The prime minister yesterday said that NPA is the biggest scam. He should then answer why is such a big scam happening under his nose?
“Will the prime minister tell how NPAs of public sector banks and commercial banks have increased so much ever since his government came to power. Will Modiji hold an independent inquiry by an independent agency into the rise in NPAs of banks during his regime,” asked Surjewala?
He challenged the prime minister to answer why NPAs had risen in the last 42 months under him and why people who have taken public money from banks running away.
“The prime minister must also tell why has his government waived loans of wilful defaulters worth Rs 1,88,287 crore in last three years,” he asked.
Giving figures, the Congress leader said while in 2014-15 the government has waived Rs 49018 crore worth of loans, in 2015-16 Rs 57586 crore of loans and in 2016-17, loans of Rs 81683 crore have been waived, totaling Rs 1,88,287 crore.
Quoting RBI figures, Surjewala said gross NPAs of public sector banks in 2013-14 was Rs 2,27,264 crore, but in the RBI report released on October 24, this has increased in June to Rs 7,33,137 crore, showing a clear increase of Rs 5,05,873 crore in 42 months of Modi government.
Similarly, he said gross NPAs of scheduled commercial banks in 2013-14 was Rs 2,63,372 crore and as per the rating agency CARE these gross NPAs increased to Rs 8,29,338 crore.
Thus, in 42 months of Modi government, it has increased by 5,65,966 crore, he said.
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