With rising non-performing assets (NPAs) a major cause for concern, leaders of the Karnataka arm of an umbrella body of bank employees on Saturday called upon banks to make “serious efforts” towards recovering NPAs.
Describing NPAs as the “biggest danger to the banking industry”, Bank Employees Federation of India (BEFI) — Karnataka general secretary M.R. Shenoy said the gross NPAs of public sector banks was a whopping Rs. 2,04,000 crore.
Mr. Shenoy, who addressed a press meet here with leaders of the chapter, said the practice of bank employees was to mark bank nationalisation day by highlighting achievements of the sector. However, this year they decided to turn the spotlight on NPAs and the need to stop efforts aimed at privatisation of banks. Noting that successive governments had stonewalled their demand for releasing a list of corporate defaulters, they said BEFI had come out with a booklet containing names of defaulters nationwide (with outstanding amount of Rs. 10 crore and above). In a separate list, the All India Bank Employees Association (AIBEA) on Friday said as on September 30, 2013, in Karnataka there were 181 bad loans (of Rs. 1 crore and above) and the total money involved was Rs. 2,886 crore. Mr. Shenoy said serious efforts were needed to recover the loans. “Bad loans ultimately affects the economy,” he said.
