May 31 (Punjab Khabarnama) : Finance Minister Nirmala Sitharaman on Friday said that the Prime Minister Narendra Modi-led government has transformed the banking sector through various reforms and better governance. Due to this, banks have recovered more than Rs 10 lakh crore of bad loans between 2014 and 2023. She said that the Enforcement Directorate has investigated about 1,105 bank fraud cases, resulting in seizure of crime proceeds of Rs 64,920 crore. Assets worth Rs 15,183 crore have been returned to public sector banks (PSBs) by December 2023.
Sitharaman wrote on the social media platform ‘X’, “Recently, India’s banking sector achieved a significant milestone by registering its highest ever net profit, crossing the figure of Rs three lakh crore. The banking sector was transformed under the strong and decisive leadership of Prime Minister Narendra Modi. Our government atoned for the sins of the UPA in the banking sector through comprehensive and long-term reforms.” He said the Modi government has shown no leniency in recovery of bad loans (especially from big defaulters) and the process is ongoing.
The minister said, “It is sad that opposition leaders are still unable to differentiate between ‘write-off’ and waiver. As per RBI guidelines, after ‘write-off’, banks actively recover bad loans. No industrialist’s loan has been ‘waived off’. Between 2014 and 2023, banks have recovered more than Rs 10 lakh crore from bad loans.”
Criticising the Congress-led UPA (United Progressive Alliance) government for mismanaging the sector, he said, “The “seeds” of the NPA (non-performing assets) crisis were sown during the Congress-led UPA regime through “phone banking” when loans were given to ineligible businesses under pressure from UPA leaders and party functionaries.” The minister said, “The Modi government will continue to take decisive steps to strengthen and stabilise our banking system and ensure that banks support India on the growth path of a developed India by 2047.”