Bank of Maharashtra writes off Rs 7000 crore for loans

It refers to Bank of Maharashtra writing off loans total worth Rs 7,000 croes in last four years for individual loan-amount of rupees 100 crores or more in order to brighten its balance-sheet by reducing non-performing-assets NPAs. Clarification of the Bank that such writing off does not affect recovery process is meaningless because just Rs 253 crores has been recovered in last ten years from the year 2011 to 2020.

Our banking system provides all such facilities of writing off loans only to big loan-defaulters with harassing activities aimed at small loan-amounts by middle-income people. Present corona-crisis has proved to be a big blow for middle-income loan-takers of smaller amounts who practically requires waiving off small loans of banks and NBFCs where EMIs or interest could not be received after 31.12.2019 in the manner farmer-loans are frequently waived off. Reserve Bank of India (RBI) should also devise a liberal One-Time-Settlement OTS scheme for small loans given by all banks and NBFCs rather than mental-torture of loan-takers for not paying loans, EMIs or interest because ultimately these will have to be written off because of heavy business-loss in corona-crisis. Such loan-waiver and OTS schemes are rather required more rather than providing extra loans as part of Rs 20 lakh crore economic package relief. Extra loans under relief-package are not likely to be easily recovered till four-year period because of lack of business-activities.

SUBHASH CHANDRA AGRAWAL,

DELHI