It is shocking to note that the biggest bank of the country, State Bank of India, went into a loss of RS.2416 crore, in the quarter ended December,2017. In comparison, State Bank of India earned a net profit of RS.1582 crore in the previous quarter ended September, 2017. What has gone wrong with the SBI ? It must be noted that in 2017 alone, the SBI has written off an amount of RS.20,339 crore as bad loans. This is the amount borrowed, mostly by the big corporates and not repaid. Bad loans, created by the big corporates, is the real disease which ails the government banks.
Recently, the Prime Minister Narendra Modi accused in the Parliament that, the policies pursued by the previous Congress led UPA government was responsible for the huge amount of bad loans, which is killing the government sector banks. It is correct. At the same time, the present Narendra Modi government is also equally responsible for this. The Congress party led government helped the big corporates to get huge loans from Public Sector banks. Now, the BJP led government, instead of making the corporates to repay the loans, allow them to escape, by writing off those loans. Why the Narendra Modi government is not taking action against the big corporates, who are cheating the Public Sector banks, and swindling thousands of crores of people’s money?