MBEA demands Parliamentary probe into GTB, OBC merger

Mahagujarat Bank Employees Association (MBEA), affiliated to the All India Bank Employees Association (AIBEA), has demanded a Parliamentary probe into the merger of the beleaguered Global Trust Bank into the public sector Oriental Bank of Commerce.

MBEA irregularities conducted by directors of Global Trust Bank have to be investigated.

Dushyant Trivedi, general secretary, MBEA said that while GTB was merged with OBC, very little has been done to investigate the mismanagement by the directors of GTB. "MBEA has demanded that a Parliamentary probe be conducted into several issues regarding GTB," said Trivedi.

He said that the association has asked the government to probe why the RBI did not step in while the GTB was being mismanaged; who are the persons responsible for the collapse of GTB; and why criminal proceedings are not being initiated against them.

"The association has also demanded to probe why the losses of Rs 1,000 crore and bad debts of Rs 1,500 crore are being dumped on a public sector bank. Until now, no penal action has been taken against either the auditors of GTB or any of the directors directly responsible for the collapse," said Trivedi.

Reiterating the contention that all banking institutions must be brought under the government control, the MBEA said that if the government can ask a zero-NPA bank totake over a debt laden one, then it must takeover all private banks.