And what a great way to ‘get rid of NPAs’ !! In last two years, writing off over Rs.1 lakh crores. Combined with preceding three years, this becomes about 1.6 lakh crores written off !! Another Feather in the cap of Modi-Jaitley regime, that is continually enriching the rich and pauperising the poor.
According their own report, SBI has about 39 crores non Jan Dhan savings accounts. So, these ‘write offs’ notionally have cost each of these account holders (who are the primary source of total SBI deposit base of about 27 lakh crores) about RS.4100 each - which otherwise could have been given /counted as a higher interest rate, or ‘profit’ for the bank, thus not needing a capital infusion from Public funds.
With these 1.6 lakh crores of “very bad loans” or NPAs written off, out of its total advances of about 20 lakh crores (8% of the total advances written off - ouch !!), SBIs NPA scene will seem ‘good’, and the bank will be ready to give more of our money to the rich, for them to start creating further NPAs (after all, one of the primary reasons given for “cleaning up the banks bad loans, is that it enables them to lend further)! Banking has been made so crooked for the small savers.