Union plans bank strike on August 20

AIBEA has demanded that willful default to banks should be made a criminal offence

The association is protesting against attempts to privatise nationalised banks, merger and consolidation of public sector banks, unrestricted foreign investment in banks with full voting rights, banking credit for speculation and hoardings and low-cost advances to large corporates.

In addition it has demanded that willful default on bank loans be made a criminal offence under the Securitisation Act.

The union had also demanded more bank branches in unbanked areas, reduction in service charges for normal banking services , increase in interest rates on savings bank deposits, more loans to priority sector and speedy implementation of the Vaidyanathan Committee's recommendations to strengthen co-operative banks.

C H Venkatachalam, general secretary, AIBEA today released a list of willful defaulters. According to AIBEA data, there are 2,369 wilful defaulters with with an outstanding amount of Rs 20,140 crore.

The association also published state-wise list of defaulters with Maharashtra at the top. The state accounted for over a third of these defaulters with the 883 entities having an outstanding of Rs 8,877.40 crore. Maharashtra was followed by Delhi with 287 defaulters and Rs 3,171.21 crore, Tamil Nadu (225 and Rs 1,643 crore), West Bengal (230 and Rs 1,771.51 crore) and Andhra Pradesh (116 with an outstanding of Rs 1,174.52 crore).

Venkatachalam added that during the last 12 months, the bad loan base had increased by around Rs 12,000 crore.