Bank staff for speedy recovery of NPAs

Stating that there have been as many as 809 defaulters who have defaulted nationalised banks to the tune of Rs one crore or more in Gujarat alone, the Mahagujarat Bank Employees Association (MBEA) on Monday demanded speedy recovery of NPAs by banks.

The MBEA, an affiliate of the All India Bank Employees' Association, is the largest representative of bank employees in the state Quoting Reserve Bank of India figures, the MBEA says, as of March 31, 2004, there are 809 defaulters who owe nationalised banks in Gujarat a sum of Rs 5,706.19 crore.

Releasing a booklet that has been published by the All India Bank Employees Association, quoting RBI figures, Dushyant Trivedi, general secretary of MBEA, said in Ahmedabad that across the country, nationalised banks wrote off loans worth Rs 14,353 crore in the year 2003-04, which accounted for 36 per cent of the net profit made by PSU banks of Rs 39,458 crore in the same year.

"The amount of loans that are NPAs is increasing every year and this is true for both the country as a whole and Gujarat. MBEA demands that banks must speed up the process of recovery and even file criminal cases against defaulters. Also, seizures of property must take place," Trivedi said.

Trivedi said that close to 50,000 employees of public sector banks, under the banner of United Forum of bank Unions (UFBU), will stage protests in the state on July 17, the day when banks were nationalised.

"About 50,000 banks employees of Gujarat will stage protests along with ten lakh employees across the country against disinvestment, privatisation and mergers of public sector banks," Trivedi said.

Trivedi said that according to figures that have been available up to March 31, 2004, the Maradia group of companies is the largest defaulter of PSU banks with a default of Rs 1084 crore.

He added that this is followed by the Ahmedabad Manufacturing and Calico Printing Company Limited, with dues of Rs 241.56 crore.

"There are 809 defaulters who owe banks a sum of Rs one crore or more and the amount where the due is Rs one crore or more is Rs 5706.19 crore," Trivedi said.