New Delhi: Senior Congress leader P Chidambaram criticized the BJP-led Narendra Modi Government at the Centre over its banking policy by saying that due to the government’s “heavy-handed” approach towards non-performing assets, with banks having no money with them to lend.

The former Finance Minister posted a series of tweets in which he said that export credit has declined from Rs. 39,000 crore in June 2017 to Rs. 22,300 crore in June 2018. And said that the government despite these facts thinks to boost exports.

“In a climate of suspicion and vendetta, the only thing a banker looks forward to is the date of retirement. Thanks to the NDA government’s heavy-handed approach to the NPA problem, banks have no money to lend and bankers have no mind to lend,” he said.

Mr. Chidambaram said that the report from the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative has said that about 27.1 crore people in India were out of the poverty line between the year 2005-06 and 2015-16, and from those 10 years was ruled by the government for eight years.

“For the BJP government, its bloggers and bhakths, every problem is a ‘legacy’ issue. Wish to remind them that lifting 27.1 crore people out of poverty is also a ‘legacy’ issue,” he said.

Reserve Bank of India (RBI) has said Gross NPA ratio of banks is expected to rise from 11.6 percent in March 2018 to 12.2 percent by the end of the current fiscal.

The RBI has said, in its Financial Stability Report (FSR) that the stress in the banking sector continues to grow as gross non-performing advances (GNPA) ratio rises further.

“Macro-stress tests indicate that under the baseline scenario of current macroeconomic outlook, SCBs’ (scheduled commercial banks) GNPA ratio may rise from 11.6 percent in March 2018 to 12.2 percent by March 2019,” it said.

The RBI said while referring to the 11 state-owned banks under prompt corrective action framework (PCA) that they may experience further worsening of their GNPA ratio from at least 21 percent in March 2018 to 22.3 percent by this fiscal-end.

The government at the center is accused of being negligent in maintaining proper economic conditions in the country by taking bad loans. Regarding the demonetization issue too, the RBI expressed that it did not receive all the notes as was expected. Apart from that some scams too have exposed that the present government is supporting scammers like Vijay Mallya and Nirav Modi along with his uncle Mehul Choksi.

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