NEW DELHI: Accusing the Narendra Modi govt of “crony capitalism” in the aftermath of the “Nirav Modi scam” and the “murky Rafale fighter deal”, the CPM has mentioned the government’s claim of a corruption-free regime is now in tatters.
Demanding that the top minister liberate the names of industrialists whose unhealthy loans had been waived, the CPM additionally mentioned a Joint Parliamentary Committee should be set as much as probe the Rs 11,400 crore Punjab National Bank scam. In the newest edition of CPM mouthpiece People’s Democracy, the party has referred to the PNB scam because the “maximum brazen and surprising case of defrauding in the history of Indian banking”. “Is this what “ease of doing industry” amounts to in Modi’s New India?”, the editorial asked.
Pointing to wider ramifications of the PNB scam for other nationalised banks, the CPM editorial mentioned, “Four other banks – SBI, Union Bank, Allahabad Bank and Axis Bank – also have exposure. It is estimated, according to information from an RTI query, that there were 8,670 cases of ‘loan fraud’ totalling Rs 612.6 billion previously 5 years finishing March 31, 2017.”
The editorial has additionally referred to how banks, in the length of rapid liberalisation, have undertaken “dangerous investments”, and pointed to the “critical implications of liberalisation/deregulation of the banking sector and the directions to banks to pursue benefit in any way”.
It mentioned, “Instead of conserving liberalisation insurance policies squarely accountable for the scams of the PNB type, spokespersons for neoliberal insurance policies have predictably come out attacking financial institution nationalisation and public sector banks. The leader economic adviser Arvind Subramanian has used the scam to argue not only for greater deregulation, but for greater ‘non-public sector participation.’ He has argued for majority non-public ownership of PSBs.”
Holding the alleged “pursuit of neoliberal insurance policies as the basis cause of the scam, the CPM mouthpiece has additionally warned against the perils of privatisation. It mentioned, “Since independence till 1969, 559 non-public industrial banks collapsed, leaving the depositors prime and dry. Post nationalisation, 25 non-public banks that failed had been rescued via a merger with PSBs, including the so-called “new technology non-public financial institution", "the Global Trust Bank.”
It added, “The RBI inspection division has been installed mute mode....The logic of benefit maximisation in a aggressive banking surroundings has pushed PSBs down the slippery road of dangerous lending and seeking source of revenue via hobby margins and with out due diligence.”
Demanding that the top minister liberate the names of industrialists whose unhealthy loans had been waived, the CPM additionally mentioned a Joint Parliamentary Committee should be set as much as probe the Rs 11,400 crore Punjab National Bank scam. In the newest edition of CPM mouthpiece People’s Democracy, the party has referred to the PNB scam because the “maximum brazen and surprising case of defrauding in the history of Indian banking”. “Is this what “ease of doing industry” amounts to in Modi’s New India?”, the editorial asked.
Pointing to wider ramifications of the PNB scam for other nationalised banks, the CPM editorial mentioned, “Four other banks – SBI, Union Bank, Allahabad Bank and Axis Bank – also have exposure. It is estimated, according to information from an RTI query, that there were 8,670 cases of ‘loan fraud’ totalling Rs 612.6 billion previously 5 years finishing March 31, 2017.”
The editorial has additionally referred to how banks, in the length of rapid liberalisation, have undertaken “dangerous investments”, and pointed to the “critical implications of liberalisation/deregulation of the banking sector and the directions to banks to pursue benefit in any way”.
It mentioned, “Instead of conserving liberalisation insurance policies squarely accountable for the scams of the PNB type, spokespersons for neoliberal insurance policies have predictably come out attacking financial institution nationalisation and public sector banks. The leader economic adviser Arvind Subramanian has used the scam to argue not only for greater deregulation, but for greater ‘non-public sector participation.’ He has argued for majority non-public ownership of PSBs.”
Holding the alleged “pursuit of neoliberal insurance policies as the basis cause of the scam, the CPM mouthpiece has additionally warned against the perils of privatisation. It mentioned, “Since independence till 1969, 559 non-public industrial banks collapsed, leaving the depositors prime and dry. Post nationalisation, 25 non-public banks that failed had been rescued via a merger with PSBs, including the so-called “new technology non-public financial institution", "the Global Trust Bank.”
It added, “The RBI inspection division has been installed mute mode....The logic of benefit maximisation in a aggressive banking surroundings has pushed PSBs down the slippery road of dangerous lending and seeking source of revenue via hobby margins and with out due diligence.”
Name industrialists whose NPAs were waived, CPM tells Modi govt
![Name industrialists whose NPAs were waived, CPM tells Modi govt]()
Reviewed by Kailash
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February 22, 2018
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