The Hindu Business Line : Debar defaulters from holding public positions, says AIBEA

THE All-India Bank Employees Association (AIBEA) has demanded that the Government bring in legislation to debar bank loan defaulters from contesting or holding any public positions in State Assemblies and Parliament.

Addressing newspersons here on Friday on the eve of AIBEA's four-day annual conference that begins on Saturday, its Secretary, Mr C.H. Venkatachalam, said the bank unions would put pressure on the Government through the Left parties on the issue.

Apart from demanding the publishing of the list of defaulters, he said the unions were for stern action against the defaulters. "Their properties must be confiscated to adjust the loans and wilful default should be defined as criminal offence," said Mr Venkatachalam.

AIBEA, the world's largest bank employees' union with an over five lakh membership, asked the Government to further strengthen the Securitisation Act to provide for attachment of personal properties of the defaulters.

"If these steps are not taken up by the Government, we will once again revive a campaign on these issues and also launch countrywide agitation. The latest list of the bad loans will also be published shortly," Mr Venkatachalam said.

According to him, AIBEA is demanding that the Government take over all the 29 private banks in the country without giving scope for their acquisition by foreign banks. He opposed the Government's announcement to allow foreign banks to take over the private banks, which had total deposits of Rs 2.75 lakh crore. The Government's move will enable the foreign banks to easily acquire the Indian private banks with just Rs 2,800 crore of investment, he said.

AIBEA also opposed the Government's move to merge the 27 public sector banks into a few strong and globally competitive entities. Stating that the public sector banks (PSBs) were having over Rs 13 lakh crore of deposits and meeting the social commitments, he said the public savings should be left available for development and welfare activities of the people. Further, he said merger of PSBs would result in the closing down of thousands of bank branches, and lakhs of bank employees would be retrenched.

"If the Government and the bankers try to proceed with mergers unilaterally, the bank employees will express their protest through agitations and strikes, besides seeking political support," Mr Venkatachalam said.

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