Finance Minister Nirmala Sitharaman has said that no relaxation is being given to loan defaulters and ED has also attached assets worth Rs 64,920 crore. Reverting back to the oppositions allegations, she said that 1105 defaulters are still under investigation and the Modi government has not waived off the loan of any industrialist. Blaming the opposition for spreading rumours, she said that they have become accustomed to doing such acts, not even understanding the basic difference between loan waiver and write-off. Big defaulters not spared FM said that as per the instructions of the RBI, after the write-off, banks actively engaged in the recovery of bad loans. No loan of an industrialist has been waived off by the banks. Current data reflects that banks have recovered Rs 10 lakh from bad loans and are in the process of recovering more. Citing the data of December 2023, she said that an amount of Rs 15183 has been returned to the government banks. No leniency is being given to anyone and the banks are spearing none when it comes to recovery of bad loans, especially big defaulters. The Banking sector is considered the backbone of a nations economy. Recently, Indias banking sector achieved a significant milestone by recording its highest-ever net profit, crossing ₹ 3 lakh crores.This is in stark contrast to the situation before 2014 when @INCIndia-led…— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 31, 2024Governments effort have revolutionlised banking industryThe Finance Minister said that due to the mistakes of the previous government, the banking and corporate sector had to face stress. The Modi government has turned around the banking sector through various reforms and initiatives. It is the result of the good governance of the government that has led to banks recovering more than Rs 10 lakh crore from bad loans between 2014 and 2023. She said that currently, the banking sector of the country has achieved a significant milestone by recording the highest-ever net profit, crossing over Rs 3 lakh crore. They accredited this landmark achievement to PM Modis decisive leadership. The seeds of the NPA crisis, she claimed, were seeded during the @INCIndia-led UPA era through Phone Banking, when loans were given to unworthy enterprises under pressure from UPA officials and party workers. She criticized the Congress-led UPAs tenure for mismanaging the industry.In 2015, the Modi government encouraged the RBI to conduct a proper asset quality review following which NPAs of more than 10 crores were revealed.
