SME Times News Bureau | 21 Jul, 2018
Prime Minister Narendra
Modi on Friday said
that the NPA problem being faced by Indian banks is
the creation of the UPA government during 2008 to 2014.
Accusing the Congress of
"underground loot of banks", Modi said the
loans were given to select industrialists during the previous UPA
"I want to tell you about the NPA problem. Much
before internet banking, the Congress invented phone banking and this
caused the NPA mess. A phone call would get loans for their cronies
and the nation suffered," Modi said in his replyg to the debate
on the no confidence motion in the Lok Sabha.
government decided that the banks should come out into the open with
NPAs, and we also took some decisions that would help the country in
He said for sixty years after
independence, Rs 18 lakh crore was the total bank loan but between
2008 to 2014, this increased to Rs 52 lakh crores.
underground loot of banks went on from 2009 to 2014. So long as
Congress was in power, the game of looting the nation continued.
"How did it happen? Internet banking came much
later. But Congress is so intelligent that even before internet
banking, phone banking started in India. Through phone banking, they
increased NPAs to 52 lakh crore from 18 lakh crore," said
"What was the method? Loans were given on
telephone. Loans after loans were given on telephone," he
The Prime Minister also said: "We started
mechanism to reduce NPAs. UPA government took such decisions due too
which there was increase in import of capital goods. It was done by
reducing custom duties. The financing of these imports was done
through bank loans."