A Daylight Robbery
Written by Dr Vinaya T
The recent outbreak on PSU banks writing off Rs. 2.41 Trillion or Rs. 241,911 crore loans from April 2014 to September 2017 is an eye-opener and an extremely sad case for the Indian banking industry. We know that the Indian banking sector with its robust policies was able to overcome and sustain the effects of 2008 recession which rocked the global economy, but ten years down the line in 2018 we have witnessed some of the miserable cases of daylight robbery by the billionaire jewellery designer Nirav Modi defrauded PNB to the tune of Rs. 11,300 crore and the infamous absconding business tycoon Vijay Mallya who defaulted multiple banks to the tune of a whopping Rs. 9,000 crore poses serious questions to the much celebrated banking system in the country.
The other worrying aspect of this write off which is touted as a routine exercise undermines the corporate political nexus considering the period in which these loans were written off and the high handedness of the elected government in disclosing the borrower wise credit information citing RBI Act hides the major mishandling and inefficiencies in curbing the corrupt practices existing within the banking industry, corporate entities (with easy entry and exit) and the politicians. To conclude the paradox continues to be that the innocent voter receives multiple reminders from the banker to even pay an amount even as little as Rs. 1,000: whereas the influential borrower could flee the country through diplomatic channel by making himself unreachable or by overseas citizenship.