Govt should introduce new recovery policy: Ghosh

Source: The Hitavada      Date: 10 Jul 2017 09:43:21


Business Bureau,

PUBLIC sector banks (PSBs) are at crossroads with mounting non performing assets (NPAs). To deal with the NPA crisis, public sector banks need to be empowered to recover the loans from wilful defaulters and large corporates. An appropriate system needs to be introduced and fresh guidelines be proposed to take charge of assets and initiate action against wilful defaulters. Government should introduce new recovery policy to lower the NPAs of PSBs. This was observed by Debasis Ghosh, General Secretary of All India Union Bank Officers Federation (AIUBOF) while talking on the second day of 100th central committee meeting. The meeting was organised by Union Bank Officers Association, Maharashtra Unit on Sunday.

He said that the wilful default of loan should be treated as a criminal offence. Government should initiate rapid and radical changes in the banking sector. During the last decade, the NPA crisis has ballooned due to the support given to corporates by the Government. For this, the Government was blaming the bank officers for distributing loans.

“But, it is the Government and RBI who should be held responsible for creating the NPA mess due to thoughtless policies and favouritism towards corporates,” he said. A proper mechanism should be introduced which clearly distinguish between a wilful defaulter and defaulter.

The bank officers were also against mergers and acquisitions of public sector banks, he said. “One bad balance sheet of a bank merging with another bad balance sheet will not create a strong bank,” he pointed out. “Instead, the Government should infuse capital in banks and make their balance sheets strong. They should also assist banks in recovering corporate loans,” Ghosh suggested.

PSBs have played a prominent role in executing various promotional poverty alleviation schemes of the Government like Jan Dhan Yojana, Mudra loan etc., and had successfully implemented demonetisation in the interest of the country. “The role of public sector banks is to provide banking to the masses compared to private sector banks where profit is the only motive,” he said.
“Public sector banks should not be compared with private sector banks,” he said. Public sector banks provide loans to priority sector like agriculture, roads, schools, infrastructure etc.

The public sector banks should be provided a level playing field to compete with private banks.
Present were Prabhat Saxena, President of All India Union Bank Officers Federation (AIUBOF), vice presidents N N Abhang, Ambros Wilford, Kaushik Lahiri, Swarna Das and P M Balachandra. J D Moundekar, President of Union Bank Officers Association Maharashtra Unit, N N Abhang, General Secretary, S S Jagtap, Chairman, T V Nimje, Joint General Secretary and bank officers of various public sector banks.