Banking sector continues to be in bad shape: Log Party

Urban Mirror Correspondent

Lucknow, September 24: The Log Party today expressed concern over continuing crisis in banking sector in the country. The Log Party said while crisis was going on even before outbreak of Pandemic the situation has worsened after long lockdowns and massive disruption in business and industrial activities in the country. The party said despite NDA government’s repeated assurances and packages the improvement in banking sector seems to be remote and unlikely to attract investors.

The spokesman of Log Party said here on Thursday that banking sector has virtually collapsed because of fraudersters looted banks over the years. The Log Party said there is sharp rise of 72% in financial scandals in banking sector which indicated that the situation has assumed serious dimension. The spokesman said that while overall frauds in baking system accounted for Rs 23,933 crore in 2016-17 with 5,917 fraud cases, the maximum 2526 cases were advances related and 2059 were cyber frauds. The Log Party said that such an enormous loot has given ample indication about total administrative failure and prevailing mismanagement in collusion with bank officers, politicians and bureaucrats.
The spokesman said banking sector frauds increased sharply over the years due to large value case especially major PNB fraud of Rs 14000 crore involving diamond merchant Nirav Modi and his uncle Mehul Choksi in the jewellery sector and the accused are still absconding. The spokesman criticising the NDA government for failing to nab PNB looters said that investigation agencies are slack in this connection. The spokesman further said a large number of banking frauds have also led to an increase in the NPA (non-performing assets), which had increased to Rs 10.3 lakh crore as of March, 2019. The spokesman said such a massive bank fraud over the years was not possible without connivance of the politicians and bank officers. The spokesman said there was an urgent need to control the situation with stern punishment to the accused people.

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