The Modi Government has claimed that due to tough measures taken by it about 2100 companies here refunded the bank loans amounting to 83,000 crores of rupees.
It appears to disguised and deceptive public information to hide or cover up real situation of huge bank backlog of bad loans still prevailing in uncertain situation of recovery, whether it will be recovered or not.
The Government should have informed that who were these companies and how much loans were given to them and how much it have repaid. These 2100 companies are small companies, who were given small loans. The recovery amount of 83,000 crores of rupees are total recovery from these small loans seekers.
Recently the Industrial Organization Assochem (Associated Chambers of Commerce and Industry) has said that due to certain heavy bad loans transactions related to Mallya, Modi-Chokse and others have scared the banking sector from giving loans to corporate, industrial sectors.
Now the banks are shy from advancing to big loans to infrastructure and heavy industry sectors. The banks have adopted a new policy of approaching consumers for getting consumers loans and little bit big loans to small and medium industrial sectors.
It has created a very serious situation for heavy industrial ventures and infrastructure concern. The Government itself has revealed the NPA of banks amounting to Rs.7 lakh crores are not paid back.
The Government is taking recourse of framing the Insolvency and Bankruptcy Code Act and has further amended it. But big catch like Mallya, Modi and many others have escaped to foreign countries and it appears that loan due for these persons may not be recovered.
Despite and these tall claims of bank recovery the public sector banks losses now record Rs.50,000 crores in the quarter ended in March 2018. It is more than double the losses Rs.19,000 crores in the quarter ended December 2017.
The huge losses are fallout a new Reserve Bank of India norms scrapping all loan restructuring schemes and will put pressure on the Government to infuse more capital into public sector banks.
The Union Government by an amendment in the Insolvency and Bankruptcy Act has provided great relief to home buyers. Now on any reality company going insolvent the home buyers will also get a share in the property disposal funds.
Recently many big reality (Housing) companies cheated many buyers. They were neither given houses nor their money refunded. Till now only the banks were entitled to get funds in the auction of company properties.