Chairman and managing director of Central Bank of India Rajeev Rishi has regretted that the public sector banks are not doing well on the performance index as it has become increasingly difficult for them to recover bad debts that are incurred on account of Non Performing Assets (NPA).
It is not just Central Bank but other institutions, including the Bank of Baroda, and the Punjab National Bank, that have incurred huge losses on account of NPAs, he told a national conference of Central Bank Officers Association here on Sunday.
He said the Central Bank had incurred bad debts of Rs.26,000 crore and a loss of Rs. 1,420 crore.
“If our employees make Rs. 3,000 crore cash recovery from NPAs, the bank can survive,” he said. He asked employees to mobilise more operating profits from current and savings accounts.
Public sector banking is the only way forward for nation’s progress, opined Mr. Rishi.
Speaking at the meet, D. Raja, Member of Parliament, Communist Party of India, said banking sector has to serve the interests of the rural poor whose money go into the operational profits of banks. Commercialisation of the banking sector will affect the nation’s progress.
“Banks cannot cater to the interests of those who possess money and power. The Union Government should not play into the hands of banking barons and kill public sector banking in India,” Mr. Raja said.
Referring to recent reports of communal polarisation in the country, Mr. Raja said: At a later stage the communal forces could target even the trade unions and other public servants.
Retired judge of Supreme Court, Justice B. Sudarshan Reddy, said banking sector has added to the nation’s progress. “After Independence, the country based its growth on nationalised banking. While banks were earlier in the hands of a few banking tycoons after nationalisation in 1969, the banking sector played a vital role in the country’s progress.” Banking has added to the progress of other sectors, including infrastructure and defence, he said.
