Banking policies since 2000s and the previous governments do have a hand in increasing NPAs. But for the PM to evade responsibility of the NPA mess during his tenure is imprudent. The corporate write-off between 2007 – 2014 was about Rs 1,21,650 crores which took a quantum leap to Rs 2,33,141 crores just between 2016 – 2018.
Business failure precipitated by demonetisation and the failed GST implementation accelerated the rise of NPAs. If one compares this with the recovery rate of these written off loans, before 2014, an average of 40% of loans were recovered which dropped to an abysmal 20.8% under PM Modi.
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