Robbing Peter To Pay Paul ?

It has finally come to pass

NDA government is pumping in Rs 22,915 crore in 13 Public Sector Banks to help them " Re-Capitalize "

Meaning ?

#  Rob the tax-payers ( Peter ) of this amount and pay it to these 13 banks ( Paul )

So that , in turn , these bank can write-off this debt owed to them by 8167 " Wilful Defaulters " ( the Ultimate Robbers ? )

And this is just the BEGINNING !

This process of " Bailing Out " of the banks ( both Public Sector and the Private Sector ) , will continue for next 4/5 years till the entire NPA ( Non Performing Assets ) of approx Rs 7 lakh*crore gets written off

All the while when poor farmers , unable to repay Rs 20,000 loan ( when monsoon fails ) , continue to commit suicides ( 17,000 each year )

Apparently , not allowing banks to go under ( or , for bank officers to forgo their annual performance bonuses ) , is GOOD ECONOMICS

I only wish , those farmers had borrowed Rs 50 lakh each ( instead of Rs 20,000 ) and then refused to repay !

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20  July  2016

www.hemenparekh.in / blogs