Bank unions to observe July 19 as 'Save public sector banks day'

The United Forum of Bank Unions has decided to observe July 19, the 48th anniversary of nationalisation of major banks, as 'Save public sector banks' day.

All members will wear a commemorative badge on the day, display posters in front of all branches, distribute leaflets and hold rallies/demonstrations at all centres across the country.

Nation buildes

Public sector banks are made to bear the cross for the sins of the private corporate defaulters, CH Venkatachalam, general secretary, All India Bank Employees Association, said.

These banks need to be defended and saved. They are nation-building institutions and must remain so. Social banking has to be strengthened and expanded.

The main challenge that they face today is the alarmingly increasing bad loans euphemistically known as non-performing assets.

These have crossed all acceptable proportions and have reached a dangerous level threatening the very sustainability of the banks.

"Everyone knows that the main share of this danger is contributed by the corporate defaulters who are taking our banks for a ride," Venkatachalam said.

Recover bad loans

But the government has refrained from taking any tough measures to recover these bad loans. On the other hand, all types of concessions are being doled out to them.

These range from interest waivers, one-time settlements, compromises, corporate debt restructuring, strategic debt restructuring, provisions, hair cuts and write-offs to sustainable structuring of stressed assets.

To cover up these losses, customers and banking clients are made the scapegoat by way of hike across all types of service charges, fees and penalties.

"It is high time that the government took stringent measures to recover the bad loans and take bold action against the big defaulters," Venkatachalam said.

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