Listened to FM’s address to the media. It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except “talk to the RBI”.
As expected, the FM has indirectly blamed the UPA for the near collapse of YES Bank contrary to her own claim that the crisis started in 2017.
Did you notice that the FM did not acknowledge the numbers of the loan book of YES Bank? Did you notice that FM did not explain how the loan book miraculously jumped from Rs 55,633 crore in March 2014 to Rs 2,41,999 crore in March 2019?
FM was focused on what happened during the UPA. What happened was UPA did not allow any bank to reach a state of collapse. Under UPA, weak banks were merged with other banks well in time to avoid a crisis.
The decisions to merge were taken by RBI Governors Dr C Rangarajan and Dr Y V Reddy. Why doesn’t the FM call them and ask them to explain their decisions? She might find that the decisions were correct and taken by competent Governors.
What is the government doing today? Is the government not merging weak public sector banks with stronger public sector banks?
Naturally, FM blamed the “legacy” of UPA. She will say that for the rest of the tenure of the BJP government!
Naturally, FM blamed the “legacy” of UPA. She will say that for the rest of the tenure of the BJP government!
