Union minister and Congress leader P Chidambaram has blame the Modi government through the Yes Bank crisis. Chidambaram alleged that bad loans have increased four times under NDA rule and demonetisation has worsened the situation. He asked whether it was right that SBI was looking for an investment opportunity in Yes Bank? Why should SBI invest in Yes Bank?
Chidambaram said, “Actual dates are now available. The loan at the end of March 2014 was Rs 55,633 crore, which has increased to Rs 2,41,499 crore at the end of March 2019. At the end of March 2017, the figure was Rs 1.48,675, which increased to 2,41,499 at the end of March 2019. Loan has jumped after demonetisation.”
BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed
First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility?
Is there a third bank in the line?
— P. Chidambaram (@PChidambaram_IN) March 6, 2020
Reacting to the crisis at Yes Bank, P Chidambaram in a tweet said, “The Bhartiya Janata party has been in power for six years. Their ability to govern and regulate financial institutions stands exposed.” His tweet came a day after the Reserve Bank of India (RBI) placed capital-starved Yes Bank under a moratorium and capped monthly withdrawal limits at Rs 50,000 per account. In his tweet, P Chidambaram also said, “First, it was the PMC Bank. Now it is Yes Bank. Is the government concerned at all? Can it shirk its responsibility? Is there a third bank in the line?”
Former Union Minister P. Chidambaram demanded that SBI should take the loan book of Yes Bank, even if it is one rupee. The loan should be recovered and at the same time the depositors should be assured that their money will be safe and will come back. Yes Bank, the fourth largest private bank in the country. To overcome the crisis, the Reserve Bank has prohibited withdrawing more than Rs 50,000 from the bank for a month. This has led to a long queue for withdrawals at ATMs.
At the same time, Chidambaram targeted Finance Minister Nirmala Sitharaman and said that the Finance Minister was heard addressing the media. It is clear that the crisis has persisted since 2017 and the government has practically done nothing but “talk to the RBI”. He further wrote, what is the government doing today? Is the government not merging weak public sector banks with strong public sector banks? Naturally, the finance minister blamed the “legacy” of the UPA. She will say the same for the remaining tenure of the BJP government.