‘Corporate giants and public representatives among the list of defaulters’
Public sector banks, which are in a crisis due to alleged “anti-banking policies” being adopted by the Union government, are further pushed into losses with rising Non-Performing Assets (NPAs).
“Corporate giants, public representatives, and industrialists are among the long list of defaulters who owe nationalised banks Rs. 2.5 lakh crore,” said All-India Andhra Bank Award Employees’ Union leaders here on Saturday.
Despite facing stiff competition from private banks and insurance companies, the public sector banks were making good business, but the increasing NPAs were pushing the institutions into losses, they said.
In December last year, the government had passed a bill in the Lok Sabha, paving the way for attachment of properties of defaulting companies and individuals.
This, they opined, was a conspiracy to save the defaulters, as their shares had very low value in the market. “The government should revise laws to recover loans, which improves the financial position of banks. Criminal cases should be booked against loan defaulters and fresh loans should not be granted to non-payer,” said union general secretary T. Ravindranath.
The NPAs pertaining to Andhra Bank were Rs. 400 crore. The steep increase in steel and cement prices were having an adverse impact on the balance sheets of the banks.
The government should initiate measures to open more branches and spread banking services in the rural areas for effective implementation of the financial inclusion scheme, said union secretary K. Nagesh Kumar.
The centre was proposing to shift the deposits in public sector banks into speculative trading (forward trading) and bring laws for merging of banks, which would boost up the business in the private sector, the union members said.
Defaulters owe nationalised banks Rs. 2.5 lakh crore, say union leaders Booking of criminal cases against defaulters favoured
Defaulters owe nationalised banks Rs. 2.5 lakh crore, say union leaders
Booking of criminal cases against defaulters favoured