Finance Minister Nirmala Sitharaman accused the Congress-led UPA government of exacerbating the bad loans crisis, which hampered the credit needs of millions aspiring to start businesses. Sitharaman launched a scathing attack on the Congress and its allies, alleging favoritism towards dynasts and cronies, leaving ordinary Indians struggling.
In a series of social media posts, Sitharaman criticized the UPA’s banking policies, blaming them for keeping the poor and middle class excluded from banking services for years. She praised the Modi government’s reforms, which she claims revitalized the banking sector, emphasizing measures like the Insolvency and Bankruptcy Code (IBC) and the Fugitive Economic Offenders Act.
Sitharaman clarified that there have been no loan waivers for industrialists, only write-offs followed by active recovery efforts by banks. She highlighted the success of recovery efforts, citing figures from the Directorate of Enforcement (ED) regarding bank fraud cases.
She attributed the Non-Performing Assets (NPAs) crisis to the UPA era, where loans were allegedly granted based on political connections rather than business viability. Sitharaman noted the significant improvements in the banking sector under the Modi government, with public sector banks recording record profits and reduced NPAs.
Overall, Sitharaman painted a picture of transformation from a banking crisis to a robust financial sector, crediting the government’s policies for the turnaround.
