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Kochi, Dec. 5 The All India Bank Officers Association (AIBOA) has pointed out that despite the high employment potential of small and medium enterprises, self employment categories and medium scale enterprises which contribute 40 per cent of the country’s exports, the banking sector remains heavily loaded against them.

Pointing out that banks continue to charge rates ranging from 11-13 per cent to small and medium enterprise as against six-eight per cent for big ticket borrowers like large corporates and multinational agencies, Mr R. J. Sridharan, General Secretary. said that AIBOA would be launching a country-wide campaign against this unequal policy. Even in the agricultural sector on which 70 per cent of the people depend for livelihood, the cost of credit is more than what it is for the big ticket borrowers.

In a developing country like India where nearly two lakh farmers have committed suicide during the reform period, charging such differential rates has further reinforced social inequalities. The association has therefore demanded that the system of NPA provisioning and write off be stopped forthwith and that the small sector be provided credit at five-seven per cent.

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