Finance Minister Nirmala Sitharaman and Congress Leader P ChidambaramFinance Minister Nirmala Sitharaman and Congress Leader P ChidambaramFormer finance minister P Chidambaram has criticised present Finance Minister Nirmala Sitharaman for blaming the UPA government for the YES Bank debacle.
In a series of tweets, he criticised the BJP government for not taking enough initiatives to regulate financial institutions.
He also said that the incumbent government did nothing to stop the crisis that started in 2017.
"It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except "talk to the RBI"," Chidamabram tweeted. "As expected, the FM has indirectly blamed the UPA for the near collapse of YES Bank contrary to her own claim that the crisis started in 2017."
Listened to FMs address to the media. It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except talk to the RBI.
P. Chidambaram (@PChidambaram_IN) March 6, 2020
As expected, the FM has indirectly blamed the UPA for the near collapse of YES Bank contrary to her own claim that the crisis started in 2017.
P. Chidambaram (@PChidambaram_IN) March 6, 2020
Chidambaram sought explanations as to how YES Bank's loan book jumped from Rs 55,633 crore on FY2014 to Rs 2,41,999 crore in FY2019.
Did you notice that the FM did not acknowledge the numbers of the loan book of YES Bank? Did you notice that FM did not explain how the loan book miraculously jumped from Rs 55,633 crore in March 2014 to Rs 2,41,999 crore in March 2019?
P. Chidambaram (@PChidambaram_IN) March 6, 2020
"FM was focused on what happened during the UPA. What happened was UPA did not allow any bank to reach a state of collapse. Under UPA, weak banks were merged with other banks well in time to avoid a crisis."
FM was focused on what happened during the UPA. What happened was UPA did not allow any bank to reach a state of collapse. Under UPA, weak banks were merged with other banks well in time to avoid a crisis.
P. Chidambaram (@PChidambaram_IN) March 6, 2020
Chidambaram also pointed out that the BJP government was itself trying to merge 'weak public sector banks with stronger public sector banks' to save the financial sector.
The decisions to merge were taken by RBI Governors Dr C Rangarajan and Dr Y V Reddy. Why doesnt the FM call them and ask them to explain their decisions? She might find that the decisions were correct and taken by competent Governors.
P. Chidambaram (@PChidambaram_IN) March 6, 2020
What is the government doing today? Is the government not merging weak public sector banks with stronger public sector banks?
P. Chidambaram (@PChidambaram_IN) March 6, 2020
Naturally, FM blamed the legacy of UPA. She will say that for the rest of the tenure of the BJP government!
In earlier tweets today, Chidambaram had questioned the State Bank of India's decision to explore investment opportunities in YES Bank. "SBI should take over the loan book of YES Bank for one rupee, recover the loans, and simultaneously assure the depositors that their money will be safe and will be returned," he said.
Sitharaman during a press conference today said that RBI had noticed governance issues and weak regulatory compliance at the bank, along with wrong asset classification and risky credit decision.
The RBI on Thursday had put YES Bank under a moratorium due to the huge losses the bank was facing. It took over YES Bank's board for the next 30 days and put a Rs 50,000 cap on cash withdrawals.
Also Read: RBI announces restructuring of Yes Bank; SBI likely to hold 49% stake
Also Read: Yes Bank employees' jobs secured for at least a year
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