New Delhi: Soon after finance minister Nirmana Sitharaman concluded her much-awaited press conference on the ongoing crisis of Yes Bank in which the minister indirectly blamed the UPA government for the present banking crisis, former finance minister P Chidambaram took two Twitter and countered her claimed. Also Read - UPA Liable For Bank Disasters, SBI to Invest In Yes Bank | 10 Things Nirmala Sitharaman Said
What’s the government doing today? Also Read - Here is How RBI is Planning to Restructure Beleaguered Yes Bank
“It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except talk to the RBI,” Chidambaram tweeted. Sitharaman has said that the crisis did not come without forewarning. The day-to-day activities of the bank were under RBI’s watch and RBI found governance issues, the culture of weak compliance and wrong asset clarification. Also Read - Yes Bank Crisis: 'Depositors' Money Safe, Steps Being Taken in Everybody's Interest', Assures FM Sitharaman
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, Chidambaram tweeted.
Why no mention of Yes Bank loan books?
“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?” Chidambaram wrote
Ask RBI why it merged banks
“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,” Chidambaram wrote. “The decisions to merge were taken by RBI Governors Dr C Rangarajan and Dr Y V Reddy. Why doesn’t the FM call them and ask them to explain their decisions? She might find that the decisions were correct and taken by competent Governors,” he added.
Aren’t you doing the same?
“What is the government doing today? Is the government not merging weak public sector banks with stronger public sector banks? Naturally, FM blamed the “legacy” of UPA. She will say that for the rest of the tenure of the BJP government!