Money & Banking

‘Indradhanush lacks major steps to recover NPAs’

Our Bureau Mangaluru | Updated on January 23, 2018 Published on August 23, 2015

A major part of NPAs of PSBs are in infrastructure, power and telecom sectors. When private sector banks had stayed away, PSBs had lent to these sectors





The ‘Indradhanush’ programme of the Centre does not contain any major steps to recover NPAs (non-performing assets) in public sector banks (PSBs), according to All India Bank Officers’ Confederation (AIBOC).

DN Prakash, President of Corporation Bank Officers’ Organisation and Vice-President of AIBOC, said that there are no measures proposed under ‘Indradhanush’ to strengthen the recovery process through debt recovery tribunals and SARFAESI Act.

In a press release issued here, he said that a major part of NPAs of PSBs are in infrastructure, power and telecom sectors. When private sector banks had stayed away, PSBs had lent to these sectors as part of their commitment to economic growth and nation building. Today, they are blamed for the NPAs in these sectors.

He said that there is no resolve on part of the Government to recover NPAs from big corporates that constitute the major chunk of NPAs in the industry.

AIBOC demands stringent punishment to wilful defaulters, he said.

Opposing the policy statements to set up Banks’ Board Bureau (BBB) and to set up holding company for PSBs, he said this is the first step towards consolidation as recommended by the PJ Nayak Committee.

Prakash said that AIBOC has already challenged the selection of candidates from private sector banks for the posts of managing director and chief executive officer in top five PSBs through a writ petition in Supreme Court. Among others, AIBOC has contended that the appointment of non-executive chairman is in violation of the Nationalisation Act, he said.

AIBOC intends to resort to organisational action if the Government fails to address its issues, he added.

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Published on August 23, 2015
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