The campaign is aimed at stopping loot of public money and starting recovery of bad loans. Since the RBI or the Government is not publishing the list of loan defaulters, AIBEA is publishing the list containing the names of the top 400 defaulters of Public Sector Banks. Whopping Rs 7,03,000 crore are involved in these 400 accounts.
Nagpur News: Alarmed over the ever increasing bad loans that have taken the shape of a monster threatening the very existence of banks in India, the All India Bank Employees’ Association (AIBEA) has decided to wage a war on the nagging problem. The AIBEA has decided to launch a sustained campaign against the mountain of bad loans in banks including opposing the corporate loot of public money. The trade union, as a part of the campaign, has demanded stringent measures to recover the bad loans.
The AIBEA has revealed the mind-blowing facts and figures on bad loans.
The AIBEA, the largest trade union of bank employees representing more than 5 lakh employees working in public sector banks, private banks, foreign banks, co-operative banks and regional rural banks, had observed December 5, 2013 as All India Demands Day to highlight the issue of huge increase in the bad loans in the banks. It also released the list of top 50 bad loan accounts.
While Government is also alarmed and concerned over the massive increase in bad loans in the banks, no effective measures have been taken by the Government to recover these loans, a press release by AIBEA said.
The campaign is aimed at stopping loot of public money and starting recovery of bad loans and kicking out the bad loans before they kill the banks. Since the RBI or the Government is not publishing the list of loan defaulters, AIBEA is publishing the list containing the names of the top 400 defaulters of Public Sector Banks. Whopping Rs 7,03,000 crore are involved in these 400 accounts.
The AIBEA has been pondering over some disturbing aspects over the years. The aspects include: Why these loans are not coming back? Who is responsible and accountable? “If the Bank Executives have given the names, let there be a probe. If there is a political nexus, let it come out. Country should not be for somebody’s default. People should not be punished for corporate default,” said AIBEA.
The trade union has been demanding the following:
- Make willful default of bank loan a criminal offence.
- Order investigation to probe nexus and collusion.
- Amend Recovery Laws to speed up recovery of bad loans.
- Take stringent measures to recover bad loans.
- Do not incentivize corporate delinquency.
- RBI should periodically publish the list of bank loan defaulters.
“Since Government is not taking adequate steps to meet our above demands, we have decided to continue our campaign,” asserted the General Secretary of AIBEA C.H. Venkatachalam.