Banks in India have accumulated Non Performing Assets (NPA) of Rs.6,00,000 crore, the Public Accounts Committee (PAC) of Parliament has revealed.
PAC chairman and senior Congress leader K.V. Thomas said here on Monday that 54 per cent of the bad loans were advanced to corporate houses. Nationalised banks accounted for more than Rs.4,00,000 crore to Rs.5,00,000 crore of NPA. The PAC, in its report to Parliament, would recommend steps for recovery of bad loans. This was the first time the committee had assessed the NPA of banks.
Addressing a Meet the Press programme organised by the Thiruvananthapuram Press Club, Mr. Thomas said banks were adopting a lenient approach to corporate houses defaulting on loans when students and farmers were finding it difficult to get credit. “The banks justify their stand on the grounds that most of the loans were for infrastructure projects such as coal mines or airports.”
Mr. Thomas said the BJP was emerging as a political force to be feared in Kerala. The BJP had gained strength from a wilting CPI(M), giving rise to new political equations in the State. The situation demanded that secular parties align with the Congress to defeat the BJP, he said.
Mr. Thomas said politicisation was the bane of infrastructure projects in Kerala. Political parties should adopt a positive approach to big tickets projects such as the Vizhinjam seaport and Kochi Metro, he said. Pointing to the resistance to laying the LNG gas pipeline in Kerala, he said Gujarat had completed the project though it was inaugurated much later.
54% of bad loans advanced to corporate houses: PAC chairman
