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The Economic Times

State-run banks disburse Rs 81,700 crore through 'loan melas'

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Banks playing at the cost of depositors'' money. Depositors are crying and dying and are losing the trust in banks but the government is pressurising banks to organize loan melas and throw the depositor''s hard earned money into drain. most of the co-operative banks have earned a bad name as the recovery of loans given by them is very low but corruption is very high. Every politician is promising loan waiver, where does the money come from? It is the public money and not the politicians'' personal assets. Should we stop depositing money in Banks and go back to medieval age sahukars who at least had some moral and could be pressurised.

Rohan (india)

Just like "Loan in 59 minuets" scam ?

Rohan (india)

Disbursed on papers to the unwilling borrower. Those who avail it, will not repay.

Will this generous ''mela based distribution work finally? A bg question. Listen to this year''s Nopbel p[rize winner in economics; they say it is not making the money available to people, but to check and ensure that the money given works for the intended purpose. Ensuring this is the challenge to the lenders and bankers.

melas and melee are boon of theGovt

Murthypgk (hyderabad)

IT IS NOT NECESSARY TO BREAK EGGS TO MAKE OMELETS. LOAN MELAS WILL DO MIRACLES. RBI AND BANKS ARE OURS. PL VISIT ONCE.

These giving of loans is just another stunt of bjp to buy votes... yet I feel, these same people who have been given Loans will not vote for bjp in the coming Elections..Jai Hind

Vihin (Nihiv)

If you are distributing money in Melas and Funfairs, then why are you torturing to us.-Vijay MaalLiya

What is the ROI? old one or new modified one

Praker (Bangalore)

Now who will recover it? How much honest tax payer need pay to cover this..

Sarat

IfState Bank of India keep on public money as loan and not recovering the NPA then public will start taking out their deposits. Giving loan is easy, but recovering the loan is impossible

Ramesh

IF CONGRESS COULD DO THE BJP WON''T FALL BEHIND......A NEW LOT OF NPAS R CREATED N PUBLIC HELPLESS....... THE GOVERNMENT IS GREATEST IN DISBURSEMENTS......

Loan Disbursement is never an issue?? what about recovery??

Subodh

Many pessimist comment without contributing substantially for India''s growth..It would be much better if they DO SOMETHING POSITIVE rather than just commenting..

Subodh

Hoping that ALL CRUCIAL CHECKS are in place, so as to avoid ANY MAJOR HICCUPS later & Country continues it growth & development agenda for EVERY DESERVING INDIAN CITIZENS..

To increase the demand or consumption, Govt. can think about the following income tax exemption - in the next 5 months in this financial year,if spend 3-5 lakhs using Credit/Debit card or UPI and claim income tax exemption for this amount

Padamnoor

Large Private Sector banks started to lend Ten times of last year loans, then even 10%NPA of year One will become 1% NPA of year TWO. That is the dangerous game all are trying to play!

Padamnoor

If onions cannot be exported how will loans be closed! We don''t know what to do with what "We Grow in India" How can we handle Make in India?

Vipin

As in today''s scenario, most of PSU Branch Heads are young, most of them in 25-35 age group, especially in case of small PSU banks, they are susceptible to the pressure exerted by their seniors.Consequently, they sanction loan in a haste just to apease their bosses or to avoid possible reprimand in Business Review Meetings.People like Zonal Heads, Circle Heads and even GMs sitting at controlling offices, in spite of knowing everything, turn a blind eye to what''s happening at Branches.They just want the targets to be achieved , as they know, at the end of the day, it is the poor branch head who will bear the brunt of charge sheets and staff lapses.

Sameer (Pune)

How much of this is not going to come back any guess???

Motilal

when commercials bank finding difficult to reduce NPA how copertative bank state run will able to recover money on due date surprise

Rajesh

we are waiting to be venenzuela under present regime

Manabendra

The employees of the state runned banks won''t be bothered to recover these loans, so why worry

Anushka (Surat)

Lot of money distributed to kisan, now through loan melas, too much money in the country, then how the economy is down?

Saikat

Being a ex-manager of public sector bank , I am very much skeptical of these loans dolled out under pressure of govt at helm.As rightly put forward by Dr. Raghuram Rajan, in India there is too much centralisation of decision making at the center.Again history will repeat itself in coming itself and loans given in a hurry and without proper due diligence and security will result in bulk addition to already huge pile of NPAs.Common People''s money is in serious jeopardy and will continue so thanks to low deposit insurance and reckless lending forced by Govt on PSBs.

Parth

most of them will become NPA.

Hemant

That''s whooping $11 billion plus. Suddenly something troublesome is brewing.

Nageswara Rao (Hyderabad)

most of this will become NPA

Anand

Hope credit score is checked. 81700 cr is good amount to start with.

Saurabh

Where this loan mela is being held. I also want to participate .

Vatan

81,509 Cr NPA''s congratulation

Ashis

we should call it NPA mela

Padamnoor

What due diligence process?

all these will become an NPA in very few years. Just to achieve some arithmetic targets, Govt. is forcing Banks to disburse loans without good credit score, sufficient security and track records of profitability. Its all poor people''s money, being wasted by Govt. and Banks.

Hopefully Banks have adhered to due diligence process as past instances show that loans granted under loan melas had generally turned into NPAs subsequenlty

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