The Reserve Bank of India should critically review its Disclosure Policy from time to time, especially policies pertaining to Regulatory and Supervisory Activities, according to the All India Bank Officers' Confederation.

The Confederation has made this demand as it feels there is every possibility that banks tend not to allow flow of information in this critical area, which will only be at the peril of all stakeholders and, in the long run, would hurt the economy.

While hailing the recent Supreme Court decision directing RBI to disclose the wilful defaulters’ list and inspection reports, Soumya Datta, General Secretary of the Confederation, said "Corporate wilful defaulters are the primary cause for today’s humongous stressed assets in banks, more especially in public sector banks."

He alleged that despite all the hue and cry, the Government and the apex regulator have not put in place a suitable frame of law or regulations to check this menace, thus, affecting the health of banks and allowing economic offenders and wilful defaulters to fleece the banks and leave the country.

Datta emphasised that it is the depositors’ savings held in various forms of deposits with banks, which is the source of funds being lent out by the banks to borrowers.

"It is observed that during the last more than a decade, the public sector banks have been consistently earning operating profits year after year, but unfortunately nearly 70 per cent of these hard-earned profits are being evaporated due to mandatory provisions for bad loans and non-performing assets, in line with the guidelines of the apex bank," he said.

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