NPA increase, Banks become loss making

The neo-liberal policies being implemented by the central government as also the corporate bias has increased the Non-Performing Assets(NPA), the loans not returned (mainly by the corporates and big business), more than double during the last 4 financial years, drifting the banks in to loss making instead of profitable as earlier. The details of the NPA and loss to the banks are given below:

NPA: 2014-15 = Rs. 4.37 lacs 2015-16 = 6.97 lacs 2016-17 = 8.40 lacs 2017-18 = 10.36 lacs

Profit / loss. 2014-15 = Rs. 37,534 crore profit 2015-16 = Rs. 17,990 crore loss 2016-17 = Rs. 11,369 crore loss 2017-18 = Rs. 87,356 crore loss.

The demonetisation, banks-merger, taking over the surplus amount with the banks by the government etc. are also responsible for the loss. Now the government has asked the RBI to hand over about Rs. 3 lakh crore (more than one third of RBI’s total balance) to the central government. To weaken and close the PSU banks and favour the private banks is the policy of the central government. It has to be resisted and defeated.