AIBEA opposes CII’s proposal on PSU banks’ stake dilution

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Non Performing AssetsThe All India Bank Employees’ Association (AIBEA) has shown it’s strong opposing against the recommendation of the Confederation of Indian Industry (CII) to the pertaining to the reduction of Government’s stake in public sector banks to 33 per cent over the next two-three years.

Explaining the reason for rising menace of Non-Performing Assets (NPAs), CH Venkatachalam, AIBEA General Secretary, said that some of the members of CII and other industry bodies are responsible for the bad loans in the banking sector.

“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.

He further said that the Industry bodies are suggesting the Centre to convert all the public sector banks as private entities.These are the entities whose innovation is responsible for the rise of bad loans.

He suggested that, industry bodies like CII should direct their members to repay the bank loans in order to unclog recycle process of loan and development. “Those who fail to repay should be expelled from the membership of these bodies,” Venkatachalam said.

Requesting the CII to withdraw its recommendation, he said that they should rather concentrate on assisting the banks to recover the bad loans.

“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,” he added.

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