"Wilful default of bank loans should be made a criminal offense,”
The top 30 bad loan
accounts in the case of 24 banks add up to ₹70,300 crore.
Mumbai, July 18:
Banks should spring into
action by recovering cash from their top 30 bad loan accounts instead
of just monitoring them, according to the All-India Bank Employees
Association (AIBEA).
The Association has
assessed that the top 30 bad loan accounts in the case of 24 banks
add up to ₹70,300 crore.
Speaking on the eve of the
45th anniversary of bank nationalistion, Vishwas Utagi,
Vice-President, AIBEA, said, “If banks mount recovery efforts in
the case of top 30 accounts and resolve cases which have piled up in
the corporate debt restructuring cell, then the Government need not
recapitalise State-owned banks.
“Moreover, these banks
will not be hard-pressed to go to the public by issuing shares.”
As at March-end 2014, the
CDR cell was trying to resolve 280 corporate accounts aggregating
₹2,42,259 crore.
The Association wants huge
bad loans due from large companies recovered by taking strong action
against the defaulters.
“The list of such bank
loan defaulters should be published by the RBI. Wilful default of
bank loans should be made a criminal offense,” said the Association
in a statement.
Though the Budget
announced the setting up of 6 more Debt Recovery Tribunals, Utagi
said this is inadequate. Thousands of cases of bank loan defaults are
already pending and unless an enlarged and effective mechanism is
built up, banks would not be able to recover their dues.
Hence, more D R Ts and
Fast Track D R Ts have to be set-up to deal with high volume loan
defaults so that banks will be able to recover the loans.
No comments:
Post a Comment