Banks have recovered thousands of crores of rupees by selling the assets of defaulters. In the Lok Sabha on Monday, Union Finance Minister Nirmala Sitharaman said banks had recovered Rs 13,109 crore by selling confiscated assets of defaulters like Nirav Modi or Vijay Mallya. In response to a question, Sitharaman said that in the last seven years, the banks have recovered Rs 549,000 crore for non-performing loans.
Thousands of crores of rupees are in arrears in various banks of the country. Some of those defaulters have fled abroad again. On the other hand, in the open air of a free economy, interest in bank deposits is declining every year. This has raised the concerns of the people of the country, especially the retired people who depend on the interest on deposits. Apart from the helplessness of the people, there is also anger against the government.
There are more defaulters like Mehul Choksi, Nirav Modi, Vijay Mallya whose combined non-performing loans amount to several lakhs crores. That mountain of unpaid debts has weakened the banks as much as it has alarmed the common man. At the same time, some feel that it is not possible to say for sure how much the health of the bank will improve in the coming days as a result of the reforms in the banking system, but the security of deposits of the common man is becoming very uncertain.
