Banks suffered a loss of ₹2.85 lakh crore due to loan defaults of 13 firms; UFBU has called for bank strike on December 16, 17

Public sector banks have suffered losses of around ₹2.85 lakh crore due to loan arrears of 13 corporates, even as banks are used to Take out sick financial institutions like Yes Bank and IL&FS, United Forum of Bank Unions (UBFU), alleged on Monday.

In the press release, UFBU convener B. Rambabu said the organization has called for a two-day all-India bank strike on December 16 and 17 to protest the Banking Laws (Amendment) Bill 2021 and the Centre’s alleged move to privatize public sector banks.

As per the data provided by UFBU, the dues of 13 corporates stood at ₹4,86,800 crore and were resolved for ₹1,61,820 crore, resulting in a loss of ₹2,84,980 crore.

“It is also a matter of fact that public sector banks have been used to provide relief to ailing private sector banks such as Global Trust Bank, United Western Bank, Bank of Karad, etc. In the recent past, it was yes bank, which was granted bail by the public sector SBI. Largest private sector NBFC, IL&FS, the bail was again granted by the public sector SBI and LIC,” he said.

He said that public sector banks participate in most of the government programs and schemes like Jan Dhan, Mudra for unemployed youth, Swadhan for street vendors, Pradhan Mantri Awas Yojana and Pradhan Mantri Jeevan Jyoti Yojana.

Hence UFBU believes that privatization of public sector banks will threaten the interests of common people and backward areas of the country.

Bank employees and officers are ready to go to any extent against privatization of banks, including indefinite strike, in case the government moves the bill for privatization of banks in Parliament, as it is detrimental to the country and its interests. People, the UFBU said.

The organization said that though the operating profits of PSBs are in a state of health, the only issue before the banks was the huge non-performing assets (NPAs) of which large corporates were held.