Bad loans in the country stood at Rs 8,95,600 crore at the beginning of current fiscal, almost a four fold growth Rs 2,16,739 crore as on March 31, 2014.
Any person, who has willfuly defaulted on loans should not be allowed to contest elections, All India Bank Employees Association (AIBEA) wrote to Election Commission of India. In India, bank deposit belong to the masses and those who have misused them cannot be allowed to become law makers.
Bad loans in the country stood at Rs 8,95,600 crore at the beginning of current fiscal, almost a four fold growth Rs 2,16,739 crore as on March 31, 2014. While NPAs stood at Rs 44,957 crore as on March 31, 2009. "Non-performing loans are rising alarmingly. Bulk of these bad loans are attributable to the big business and the affluent. In many of the cases of bank loan default, it is found to be deliberate and willful," said C H Venkatachalam, general secretary of AIBEA. He said that AIBEA has repeatedly urged the government to make public names of willful defaulters, but no government has accepted this demand. "We also been demanding criminal action against willful defaulters, which also, the Government is avoiding and evading. All these is encouraging the big borrowers to take loan and cheat the banks," said Venkatachalam.
AIBEA also said that government-owned banks have operating profits but is because of provisioning of bad loans (and large players are responsible for most of the bad loans in the country), that banks are witnessing net profit.
"Nationalized banks had an operating profit of Rs 1,55,585 crore in 2015-16, but they had to spare Rs 2,40,956 crore for bad loans, resulting in a net loss of Rs 85,371 crore," said the letter. Banks had spent Rs 2,70,953 crore in the year 2018 for adjusting bad loans. Since 2001, banks have written of Rs 4,97,188 crore.
"In the past where bank loan defaulters have contested elections, become parliamentarians and legislators and have even ministers. In public interest, bank loan defaulters should not be permitted to contest elections or hold any public office," said the letter. AIBEA urged Election Commission to issue a notification and suitable guidelines that while the nomination papers are filed by the candidates, a declaration should be obtained that he/she and the companies in which they are having stake and connections are not bank loan defaulters.
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