Arun Jaitley rubbishes rumors of waiving loans of capitalists; heres what he said

Arun Jaitley rubbishes rumors of waiving loans of capitalists; heres what he said

Finance Minister Arun Jaitley outrightly dismissed the rumors that loans of capitalists are being written off by banks and asserted that the government has not waived any loans of big NPA defaulters.

Jaitley said that over the last few days, a rumour is being propagated regarding waiver of loans of capitalists by banks.

Observing that the time has come for the nation to be apprised of facts in this regard, he said one should ask at whose behest the loans, which have turned NPAs were disbursed between 2008 and 2014 by public sector banks.

Jaitley said that rather than taking firm decision against debtors the then government relaxed the loan classification norms to keep defaulters as non-NPA account holders.

The asset quality review (AQR) carried out for clean and fully provisioned balance-sheets in 2015 revealed high NPA, the finance minister said. As a result, he said, loans of about Rs 4,54,466 crore, which were actually fit to be NPA and were under the carpet, were recognised after intensive scrutiny under AQR.

These 12 defaulters account for non-performing assets totalling Rs 1.75 lakh crore. Cases for the recovery of NPA dues from the assets of these big defaulters are under way at various stages.

Jaitley further said with the object of increase credit off-take and creation of jobs, government has taken “the big decision” of capitalising state-owned banks. Under this, with maximum allotment in the current year, capital increase of Rs 2.11 lakh crore would be effected within two financial years.

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