Banks in quandary: Who is responsible?
The category of people that claims to pay ‘taxes’ is always somewhat averse to the aspect of loan waiver of the farmers. They force the farmers to stand in the position of criminals by saying they squander the resources of the country by way of misusing the loan waiver facility, hence forcing the banks to wallow in bad debts. The central government that has given entire control of banks to corporate sector, has maintained stoic and cruel silence in the case of farmer loan waiver. If we begin to find answers to the question of whether we are really in bad debts owing to farmer loans, the answer lies in the fact that corporates are misusing the banks by looting them and shifting the whole blame on farmers.
RBI figures will reveal more than the amount of farmers’ loan waiver, the unpaid corporate debts are many times higher. Now the centre is all set to use the government reserve funds to pay off the banks’ coffers in order to make good for the unpaid loans by corporates. The fact that this has burdened the banks many times more than the loan waiver, on the government resources has been shut off without any discussion. No one is asking if the reserve funds can be used to cover for bad corporate loans, why can they not be used to make good for loan waiver.
A total of 10 state governments have so far announced Rs 1,84,800 cr loan waiver so far in 2017-18. But about a 10 corporates in India have raised loans upto about Rs 7,31,000 cr in 2015 which is about four times higher compared to the loans utilised by farmers. At the same time, the amount of top 12 non performing assets is double the amount of loan waiver standing at Rs 3,45,000 cr. According to the RBI report that was released in December 2018, the total amount of loans given by banks in 2017 and 2018 is Rather 71.5 lakh cr and Rs 77lakh cr respectively. In the corresponding period, loans for agricultural purposes stand at Rs 10 lac cr and industries have raised a loan of about Rs 26-27 lac cr respectively. Which means major loans going beyond Rs 5 cr given to big names itself crosses Rs 22 lac cr.
To put this in precise terms, the amount of bank loans given to 10 major corporates amounts to 10-14% of the total loans given by the banks, which stands at Rs 7 lac cr. Industries have utilised nearly 27% of this share. Agricultural loans stand at a mere Rs 7.7 cr. Which means the entire loan given to agricultural segment is equivalent to the loans given to top ten corporates. RBI has handed over the duty of recovering loans to National Companies Act Tribunal in 2017. Rs 48,300cr was recovered from 4 companies among them in a year. This out is miniscule compared to a total of Rs 3,45,000 cr overall nonperforming assets.
The rest of Rs 3,00,000 remains to be recovered. This amount is double than the total loan waiver announced by 10 states. Among these the amount of loans that have been written off by banks stands at Rs 11,106 cr, which is more than the loan waiver announced by Chhattisgarh and Andhra. Numbers reviews that even the agricultural loans are being usurped by those corporates who are keen on making investments in agricultural sector. Loans that went beyond Rs 10lacs in 1990 stood at 4.1% and this has increased by 23.8% by 2011. At the same time small loans under Rs 2 lac have reduced from 92.2% to 48%.
To an RTI query submitted by The Wire publication the RBI has responded with the response that govt banks had given away Rs 58,561 cr loans to 615 accounts. On an average this means each account got Rs 95 crore agricultural loan. corporate loans are the main reason for the increase in agricultural loans in India. The clause in bankruptcy process allows the pleader to save minimum assets for his safety. Hence corporate bankruptcy allows the corporate to erase old records on balance sheets and start with the new one reestablishing their relationship with financial institutions. Hence they can save their personal assets and lifestyle even after the pleaded bankruptcy. But the farmers who lose resources owing to loans that there is to save themselves from nature successes and distressful conditions lose every bit of their property.
None of the farmers have escaped the country like corporate bigwigs who have filled after raising thousands of crores in loans. They have cleared the bank notices and recovery agents and have committed suicide paying with their own lives. They have never planned on cheating the banks like their rich corporate counterparts. Agriculture is the soul of this nation food security plays a major role in the sovereignty of this country. The more this country depends on another nation for its food needs it will have to pledge its self respect at the feet of richer nations. If thousands of crores can be used to waving corporate loans a part of that must be also used to waive agricultural loans as well. Only then agriculture can be saved in this country and the country can progress well.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
