The All India Bank Employees’ Association (AIBEA) has opposed the recommendation of the Confederation of Indian Industry (CII) to the Government to reduce its stake in public sector banks to 33 per cent over the next two-three years.
CH Venkatachalam, AIBEA General Secretary, who was in Mangaluru on Monday, told BusinessLine that that some of the members of CII and other industry bodies are responsible for the bad loans in the banking sector.
Terming this recommendation as preposterous, he said: “They (private corporates) take loan. They don’t repay and make the banks to waive off. Then they are telling the Government to privatise the banks.”
He said that the industry bodies are recommending to the Government to privatise the banks to the very same private sector whose innovation is responsible for bad loans. In the country, PSU banks continue to give a bulk of corporate loans to private corporates. These corporates are now blaming the PSBs. “If pubic sector is not good, why do they come here,” he said.
Rather, he said, CII and other industry bodies should compel their members to repay the bank loans so the banks can again recycle this money for more loan and development. Those who fail to repay should be expelled from the membership of these bodies, Venkatachalam said.
Urging the CII to withdraw the recommendation, he said they should concentrate on helping the banks to recover the bad loans. Stating that AIBEA is planning to meet the Union Finance Minister shortly in this regard, he said the association would urge upon the Government to reject this recommendation of CII. AIBEA will also ask the Government to take tough action on the defaulting members of these industry bodies.
AIBEA has reiterated its demand that willful corporate defaults should be brought under criminal offence to enable the banks to take criminal action against these corporate defaulters, Venkatachalam said.