Banks in process to devastate the economy: Badish Jindal
Author(s): City Air NewsBadish Jindal. Ludhiana, May 9, 2015: Badish Jindal (President, Federation of Punjab Small Industries Associations and President of MSME Facilitation Center) and Aditaya Gupta (Secretary, MSME Facilitation Center)...
cityairnews
May 9, 2015 12:30
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Badish Jindal.
Ludhiana, May 9, 2015: Badish Jindal (President, Federation of Punjab Small Industries Associations and President of MSME Facilitation Center) and Aditaya Gupta (Secretary, MSME Facilitation Center) in a joint statement have stated here today that the Banks are in a process to devastate the economy of the country whereas the reports of IMF says that Indian Banks 36.9% lending is on risk. Which is the highest in the world whereas the banks have only 7.9% secured assets to covere this risks which is the lowest in the world. But still the banks prefer to invest the large scale customers which calculate more than 80% of the total NPA.
The Government have issued the schemes like CGTSME (Credit Guarantee Trust for SME’s) in which the Banks can lend upto 1 crore to MSME’s without any collateral, and the 80% of the lending is secured by the SIDBI.
But unfortunately Banks have no interest in such schemes and they continue to prefer to lend the large scale units.
Even the attitude of the Banks is that in reply to a RTI of MSME Facilitation Center. The Punjab National Bank refused to provide the data immediately and the figures those are supposed to be on the tips of the Banks, the Bank is unable to provide.
The MSME Facilitation Center asked the following quarries:
• Total amount and number of Cases done by your bank (Branch Wise) under CGTSME (Credit Guarantee Fund Trust for Micro and Small Enterprises) in Financial Year 2013-14 and 2014-15..
• Amount and number of Accounts declared NPA Financial Year 2013-14 and 2014-15.(Branch wise)
• Amount and number of cases declared NPA under CGTSME Scheme in Financial Year 2013-14 and 2014-15.
They further said but shockingly the Banks replied that this data is not available with them and it will take two to three months to reply the RTI.
Even the results of PNB were made online in the month of April only with a NPA of 6.55% which is one of the highest in Nationalized Banks.
But the fact is that Banks are not adhering to the orders of the government in regard to mandatory collateral free loans upto 10 lacs, The CGTSME upto 1 Crore , and mandatory lending to Micro & Small upto 60% of the total lending to MSME.
But just to ignore the facts the Banks ignores such RTIs, they said, adding the 95% applications of the CGTSME are turned back by the Banks and even after the guidelines of the State Level Bankers Committee
The Indian Banking system is on devastating status as the nationalized Banks are on the verge of bankruptcy.
The NPA of the Banks have crossed the 300611 figures upto March 2015, but the interesting facts are as under.
The Private Banks prefer to invest in small investments and cash loans whereas the nationalized banks prefer to lend the large buyers.
Further, they said recently the RBI have instructed the Nationalized Banks to recover their amounts from 85 companies which are under stress and the investment of banks in these companies is more than 3.51 Lac Crores.
Whereas the NPA ratio of Micro Small Units is on very lower side.
Shockingly the Banks have imposed penalties on 11000 officers during last year and dismissed 470 officers but not a single instruction had been issued regarding lending to MSE’s
Due to the anti MSME policies the bad days of the Banks are around the corner as the stressed asset has crossed 10.9% (around 7.06 Lac Crores) and Nationalized Banks again are on top with 13.2% and Private Banks at 5.17%.
If the banks will not start lending to MSME then even the savings in banks will be on high risk.
“We have raised the complaint to the Finance Ministry, MSME Ministry Governor RBI, and Chairman PNB regarding such attitude of the Banks”, they revaeled.
Date:
Saturday, May 9, 2015
