 In 2017 also NPA are properly understood as bad loans. Money which is not coming back. That has been the major problem confronting the banking industry during the entire 2017. Maybe in the government private public sector banks, private banks, foreign banks all have been suffering. And that is because the government is not giving proper attention to this serious problem. So last year at the beginning of the year, around 6 lakh crores. And today it has come to a, even according to government admission, it is more than 9 lakh crores. According to all India Banking Association, it is around 15 lakh crores. Many loans are not being shown as bad loans. But month after month, quarter after quarter the bad loan has been increasing. And that is indicating of the ineffective measures the government is taking to recover this bad loan. Which is a serious problem and menace in the banking industry. I think government has set up certain mechanisms for resolution of the bank loans in terms of insolvency proceedings. How well are they working? No, the government apparently people feel the government is doing something to recover the money. Say number one, middle of the year they brought an ordinance saying that we shall be invoking the insolvency and bankruptcy court. So many people thought once a very tough measure, so the government is very tough on defaulting borrowers and money will come back. But very soon we have been putting out that it is not so. And very soon it has come to the line. So in 12 accounts only 2,13,000 crores was involved. And people thought the money will come. But immediately following that ordinance, the Reserve Bank told the banks, oh you are not going to get the money, so you have to provide more on this account. You have to have a deep haircut. So a new thing came in banking, that haircut. So all banks had to provide suddenly and that's why you will find in Q2, Q3, many banks have gone and recorded losses. So that means this is not a machinery or mechanism to recover the money. On the other hand, it is only to help the corporate people. Intention is that to recover the money. But because of this insolvency, all these big people companies, they will end up in paying little amount and then they will escape out of that. And there also, again the government said, even this defaulter himself can take back that company by participating in the meeting or the auction. So we pointed out from the IBA that they are ridiculous. And so again they said, no, no, no, we will not permit the willful defaulters to participate. Because there was one company, Durai company, they had taken 940 crores of loan from bank and then bank because of this non-repayment, they went for the company Lot Tribunal. Ultimately, they landed up in a situation where hardly 54 crores was awarded by the tribunal. And that also, that meeting was done by another subsidiary company of the same defaulter. So the money, I mean, with 54 crores, they could wipe out their liability of 950 crores. That was hardly 6%. The point is for a small amount, all the big loan defaulters, big fishers, they will escape. And that's why you will find that instead of bank telling that I am going to take this insolvency petition on you, they are telling, please take action on me. What does it mean? I mean it's an easy route for them to escape and that itself is an indication how this whole, what they call IBC insolvency bankruptcy code, the procedure in the paper, it's a bogus thing. And by end of March 2008, this financial banks are going to have a very serious problem because of the government's action on this issue. See, hanking means we are giving loans. That's the risk. That's why there are so many other protective provisions when banks are doing this banking business. So in anything, any business, there will be some loss. So in bank, when we give 100 loans, maybe 2, 3, 4 loans may go bad for various reasons. So that's okay. And that banks are aware of that. But here, it has become an exclusive art to cheat the bank, take the loan, cheat the bank. It has become a profession now. Many people are doing that. That's number one. Number point is, you asked about viability. The point is up to a limit, it is bearable internationally, 2%, 3% of the bad loan. It is bearable. We can manage. But today it is going 14%, 15% in IDBA bank in terms of quantum, it is 50,000 crores and almost 25%. So this is a risk that our banks are facing and for that the money has to be recovered. But because the loans are struck up to this great extent, the point is that banks are not able to further business because there is an erosion in the capital adequacy ratio. First of all, this public sector bank, this capital adequacy ratio, per se, they are not to be made applicable at all because there is a government guarantee. So when is the question of capital? Even if the banks don't have capital, people will believe government bank. That's another issue. The point is that because the bad loans are increasing, the banks' capital is coming down. And now a lot of pressure. In fact, last year in the Nyan Sangam, governments said, FM said, that we will give capital only for the performing banks. Whereas we need medicine for the sick child. So some banks are not doing well. We need capital. So we had to go on strike on the 28th of February. Then later that government reviewed and now they said we will give to all the banks. That's one. Now they said that we will give 2,11,000 crores of capital for the bank. So it's a big news. Everybody is very cheerful. Oh, the government is going to give money. But that is also an eye-wash. Point is out of 2,11,000 crores of capital. Only 18,000 crores will come from the government coffers from the budget. And that also, already 11,000 crores they announced in the Nyan Sangam. So additional 7,000. So 18,000 will be direct contribution by the government when they give equity capital. Another 58,000 crores, it has to be raised by the bank themselves by going to the market. That means to that extent banks' capital will be privatized. This is one agenda of the government to privatize the banks. Now in the name of giving capital, they are forcing the banks to go private. So to that extent there will be dilution of government capital. It's a definite move towards privatization of the bank's capital. So 58,000 crores. And that too, no market is not okay. And banks, when they are not doing well, who will buy the chance of the banks? So maybe they have to go for a discount. So that's not a proper route. The third balance amount, 135,000 crores. From there it will come. They say we'll give recap bonds. That means the banks first have to invest money in the government. The same money will come back to the bank and recap banks. So it is not that government is giving 21,000 crores. So if some tough measures are taken to recover the loan, even if 20% of the bad loans are recovered, that is enough for the capitalization of the banks. So that is the route because either government has to give or internally banks should generate. All along banks have been generating their own capital from profit. No profits are not there. There is loss because of bad loan. Banks are the machines through which government can pressurize the banks to give loan for all development sectors. That is quite okay. There is nothing wrong. Government must direct the banks to give more and more loan for needy sector. Maybe agriculture, maybe employment generation, maybe poverty reduction, maybe rural development, maybe women empowerment. Government has to even industrial development. Nothing wrong. The point is that why do you make the banks to give loan and then blame them? And now lastly the question is what is the viability? Because of bad loan, because of erosion in capital, because banks are not able to make enough profit, the viability is a question. That's why banks are totally viable. All banks are making operating profit. They are doing good business and they can do further business. There is nothing to worry about our government banks. They are quite safe. The only problem with bad loan if government can help us to recover the money, things will be quite fine. Indian banking system is one of the most effective, very positive, vibrant banking system. But for the minus point, the bad loan for which the corporate big, big defaulters are mainly, they are the contributors, they are responsible. Government must take action on them. See, first of all, FRDI bill is not required for India and this is not the time. Based on the United States of America experience in Lehman Brothers 2008 and arising out of IMF recommendation, G20 decision, etc. and also the prescriptions of the Financial Stability Board. That is applicable for Western Bank where it is mostly investment oriented banks. So investors have to take care of the bank. Here it is run by depositors and simply telling, I will bring the same cotton paste FRDI bill in India. It is ill-timed and actually people are questioning the motive because once a certain people are afraid, if you bring a bill which is having a bail-in clause, bail-in clause must come where the investor has kept his money. When the profit is there, he will enjoy. When the loss is there, he will take care of that. But here innocent people, they keep the money for their future needs, for their monthly income, etc. So they are not to be treated like the investor. They are not investors, they are savers. So this distinction is there. Thoughtlessly the government has brought the bill and they are also... See, there are two parts. Number one, you keep your money in the bank, the managed government must guarantee the money. Number two, and now government says in bail-in, investors will have to take care. Then what about the people who have taken the money, whether Malia has any responsibility, whether Ruhi has any responsibility, whether this videocon, all these people have taken money, so they will escape. Only the innocent people, they have to bail in. So the concept is not applicable to India. In fact, we must make the borrowers responsible. Now, government is telling, don't worry about your thing, there is a provision. In 19, up to 1960, banks were not protected at all because banks were getting glow and people were losing money. So at that time, Comrade Prabhupada, who was the General Secretary of my All India Bank and Association, he was a member of parliament from the Communist Party of India. He raised the issue in the parliament that how long this will go on? Now people are losing money. So do something, make some law. So section 45-4 was added to the banking company sector at that time. And so because of this regulation, the Reserve Bank was empowered. If a bank is in problem, they will put that bank in moratorium. It will be taken over by another bank. That's why in the last, from 1960, in almost 40 plus 70, 57 years, banks have collapsed. The Reserve Bank said it is no good. But that has been not closed. People have not lost a single Naya Paisa that bank have been taken over. Point is, why do you bring the bill and threaten people? Great problem for them. That's our point. We are not afraid that because of the FRDI bill, government can close any bank or people who lose the money. That's not the point. See, in India, the psychology is very important. That too, when they are afraid that money is not coming back. What happened to my savings? People are bringing a wrong bill at a wrong time and creating this panic situation. Government was first withdraw the whole bill. And how that G20 recommendation can be implemented in any context. That can be discussed. How borrowers can be made responsible. They are the people who are responsible for the mess the banks are facing. Not the depositors. And in fact, if this is so, already there is a trend. Many people quietly, silently, we are experiencing the banks. They are withdrawing the money. They are withdrawing the money from the bank. The deposit will come down. If the deposit will come down, banks cannot give loan. If banks cannot give loan, what happened to development? What happened to Vikas? What happened to progress? Already in India, the GDP bank loan ratio is hardly 47%. You must go to 18, 90, 100% India. If India has to develop, banks have to give loan. And people keep money and we don't give loan. So it is not productive. It is a cycle. Economy and banking. Immediately FRI bill must be withdrawn. And then the government must say that section 454 of the Banking Regulation Act will apply. No bank will be closed. Automatically it will be taken over by another bank. Nothing to worry. Government must immediately restore the confidence of the people in the banking system. A new generation, mobile banking, technology, digital, all these are okay. But it is a face manner. Now India is not ready for that. We are a cash oriented economy. So disturbing that cash flow was an wise decision. And it has not resulted in eradicating any element of black money. Black money will continue. Black money is not only in cash. Black money is in so many ways. So government could not do anything. In fact, you unnecessarily created this problem. And even suppose the entire money has come. That means some black money has come in. We are giving interest on that black money. It was idle. It was not earning anything. So I don't know. It's very ridiculous that you have brought some money and you are incurring expenditure that has not helped at all. It has completely disturbed the rural economy, the retail trade, the small people. People are now afraid to hold cash. And even now another point is that banks are still having shortage of cash. Because the Reserve Bank has not printed enough, particularly the small denomination notes. So banks are facing problems, customers are facing problems. Thousands of ATMs are still immobile. They are just show piece. And what do you talk of? Digital banking. First, kindly make all your ATMs work. This slogan hearing alone will not take the country forward. But unfortunately our government believes in slogans. But reality is underground is completely different. I don't think anything positive has happened because of demonetization. Only problems have come. Not only people have suffered. Even now economy is still suffering on account of that. Of course bank employees have suffered. Even our legitimate overtime, many banks have not paid. And even banks have incurred huge expenditure. Government does not reimburse that. We are all going to have the impact maybe this year also. So that's the story of demonetization. It was a thoughtless action.