Govt responsible for bank’s NPA: Franco

Source: The Hitavada      Date: 09 Jul 2017 09:30:39

■ Business Bureau

COMING down heavily on the Union Government, the bank officers and employees’ body on Saturday alleged that they were not resposibile for growing non-performing assets of the public sector banks. In his keynote address at the 100th central committee meeting of the All India Union Bank Officers’ Federation held in the city, D T Franco, General Secretary of the All India Bank Officers Confederation (AIBOC) said that the Government relaxed norms for corporate houses to avail bank loans most of whom have been failing to repay it.

“However when it comes to fixing responsibility for the bad debt, the bank officers have been held responsible,” he said adding that a stringent action against all the big defaulters could help the bank recover the loan amount. But unfortunately, nothing of this sort is happening.

On the contrary it seems that the policy makers are protecting the interests of the corporate houses and giving them further opportunities to avail financial assistance,” he said. Franco also alleged the Government of keeping away the officer and workmen nominees from the boards of public sector banks. Commenting on wage revision, Franco said officers in the public sector should earn at par with their counterparts in private sector banks. “Disparity in wages would not attract talent in the nationalised bank,” he said.

Dilip Saha, President of All India Bank Officers’ Confederation, said that Central Government is weakening the nationalised banks by way of allowing corporate and business houses to entre the sector. “It is also creating space for the private banks by merging public sector banks with the ostensible reason to create big banks,” he said. P K Das, Regional head, Nagour, Prabhat Saxena, President of AIUBOF and Debasis Ghosh, Generl Secretary of AIUBOF also expressed their view on the prevailing challenges before the banks.