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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Prasidh, Kuldeep limit South Africa to 270 after De Kock's hundred
Visakhapatnam (PTI): India fought back gallantly through Prasidh Krishna and Kuldeep Yadav after Quinton de Kock struck his 23rd hundred, keeping South Africa to a manageable 270 in the third and series-deciding final ODI, here Saturday.
India won the toss after judging the spin of the coin incorrectly 20 times in a row. They had little hesitation in inserting the Proteas into bat, a clear indication of dew factor dominating the thought.
After Arshdeep Singh sent back Ryan Rickelton early, De Kock (106, 89b, 8x4, 6x4) struck his seventh century against India and put on 113 runs off 124 balls with skipper Temba Bavuma (48, 67b) as the visitors moved to a healthy position.
De Kock was severe on Prasidh (4/66), who erred on length continuously in his first spell (2-0-27-0). The left-hander biffed the pacer for 6, 6, 4 in his second over to milk 18 runs.
The 32-year-old quickly pounced on anything that was short, and pacers Prasidh and Harshit offered him plenty of feed on his pet areas.
Bavuma was more sedate, and made runs through those typical dabs and jabs, occasionally unfurling a drive of elan.
De Kock moved to fifty in 42 balls, and never let the tempo down reaching his hundred in 79 balls.
India found temporary relief when Ravindra Jadeja induced a false slash from Bavuma to get caught by Virat Kohli at point.
The tourists got another move on through a 54-run partnership between De Kock and Matthew Breetzkle for the third wicket, and at 168 for two in 28 overs they were in a good position to press on.
But Breetzke's punishment of part-time spinner Tilak Varma forced a rethink in the Indian camp, as skipper KL Rahul brought back Prasidh for a second spell.
What a masterstroke it turned out to be! The Karnataka man broke the back of South Africa’s top and middle order in an exceptional second spell (4-0-11-3).
Breetzke was the first man to go, trapped plumb in front with a straight one and four balls later Aiden Markram uppishly chipped a fuller delivery to Kohli at short covers.
Prasidh soon castled De Kock, whose ugly cross-batted swipe failed to connect a full length delivery from the pacer.
All of a sudden, SA found themselves at a shaky 199 for five, losing three wickets in the space of three overs.
Once Prasidh was done away with the top and middle-order, left-arm wrist spinner Kuldeep (4/41) took over and mopped up the tail as SA fell short of even a par total on this track.
