[Marxistindia] Corporate Cronyism at its Worst

[news from the cpi(m)]

March 7, 2020

 

Press Statement

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

Corporate Cronyism at its Worst

 

The collapse of Yes Bank has raised many disturbing questions about the
functioning of private banks and the failure of the regulator, the Reserve
Bank of India, to intervene in time.  The Yes Bank episode is the worst
example of crony capitalism.  The record shows that the loan account of the
bank increased spectacularly from Rs. 55,633 crore in March 2014 to Rs.
2,41,999 crore in March 2019.  The bank was saddled with huge loans given to
corporates favoured by the ruling regime.  Some of these corporate debtors
like Anil Ambani were backed to the hilt by the Modi government, despite
their well recorded precarious financial health.

 

Even though the shenanigans indulged in by the promoter and the board of the
bank were known for quite some time, the RBI did not act in time thereby
jeopardizing the interests of the depositors.  The destructive influence of
the current regime  based on corporate cronyism on the Indian economy can no
longer remain concealed.  

 

Now that the State Bank of India is being asked to buy a stake of 49 per
cent in the bank, it is imperative that the bank become a State-owned
enterprise. It cannot become a case of privatization of profits and
nationalization of losses.  Safeguarding the interests of the depositors
must be paramount. The RBI should immediate annul the limit of withdrawals
set at Rs. 50,000.

 

 

(For CPI(M) Central Committee office)

 

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