AIBOC writes to PM, FM; pitches for tough steps on bad loans

Ahead of high profile 'Gyan Sangam' at Pune, a bank union has suggested to Prime Minister Narendra Modi that banking sector reforms should focus on the objectives of bank nationalisation and initiate stringent measures for recovery of bad loans.
"Any reform measure should simultaneously address strengthening of the objectives of bank nationalisation also," the All India Bank Officers' Confederation (AIBOC) said in a letter to Modi and Finance Minister Arun Jaitley.
The government is holding two-day 'Gyan Sangam' of bankers at Pune on January 2 and 3 which will conclude with an address by Modi.
The AIBOC has specifically raised the issue of rising bad loans and suggested that "wilful default should be made a criminal offence... Wilful defaulters should not be considered for one time settlement (OTS)".

It also wanted the government to set up fast track courts and make provisions for summary trials to ensure recovery of bad loans.
The Confederation further said that of the Rs 2.5 lakh crore declared non-performing assets (NPAs), about 65-70 per cent are from large corporate houses.
Raising human resource issues, the AIBOC underlined the need for proper remuneration and promotion policies to motivate the staff. It said depriving remuneration to staff on the basis of net profit would only demoralise bank employees.