The banking sector crisis is a creation of the Central government and part of a conspiracy, Chief Minister Pinarayi Vijayan has said.
Launching a national-level campaign of the Movement for India’s Financial Independence, a collective comprising economists, political leaders, banking and finance sector professionals, here on Wednesday, Mr. Vijayan said the crisis could be attributed to the policy changes that forced banks to give long-term loans for infrastructure projects which pushed them into the vortex of the crisis.
While provisions of the Securitisation of Financial Assets and Enforcement of Securities Investment Act, 2002 are being invoked against those availing themselves of small loans, the Centre was unwilling to reveal the details of the corporates who are responsible for creating 84% of the non-performing assets (NPAs) amounting to ₹10 lakh crore.
This is the biggest graft that post-independent India saw. Recently the government waived NPAs amounting to ₹2.41 lakh crore, but has not revealed the details of the beneficiaries. If the Centre refuses to divulge the details of such wilful defaulters, they would again cheat the banks and also all corporates will remain in the shadow of doubt.
The crisis would eventually destabilise public sector banks, lead to their privatisation and provide an opportunity for Indian and foreign corporates to wrest absolute control over the financial sector and also over Indian polity, he said.
Kerala Pradesh Congress Committee president M.M. Hassan said that there was an attempt to reverse the gains of the achievements of bank nationalisation. Only the Swatantra Party and the Jan Sangh had opposed it. The country witnessed a serious crisis during the past four years under the Modi regime. Social control over the financial sector was imperative for sustaining its independence and also the freedom of the country, he said.
Planning Board member K.N. Harilal, in his presidential address, said the corporates were forcing political parties to include bank privatisation in their election manifesto in 2019 and the movement is aimed at stemming the rot that is threatening the financial and political independence.
Convener Jose T. Abraham, LDF convener A. Vijayaraghavan and CPI leader Udayabhanu were among those addressed the meeting.