86,000 COMMERCIAL, 1 LAKH CO-OP BANKS TO GO ON STRIKE

More than 86,000 commercial banks and one lakh co-operative banks all over India would go on strike in the coming parliament session in protest against some concessions to private sector in banking operations announced in the budget, a top official of All India Banking Employees Association said.

Speaking to reporters AIBEA General Secretary C H Venkatachalam said more than Rs 65,000 crore of loans lent by banks were outstanding. It would turn into bad debts and be written off, thus creating heavy losses to banks.

The loans were paid out of deposits and other savings by the public. If these were not repaid, it would be difficult for banks to return their savings with interests, he said.

Venkatachalam said people had begun to save in banks only after nationalisation as they have faith in the government. Depositors would shy away from depositing money in banks if the latter started incurring losses, he said.

He said the Association would demand publication of names of defaulters who had availed loans of more than Rs one crore and warned AIBEA would publishing their names if it was not done.

He said the government should take steps to finance some defunct banks and provide tax relief to cooperative banks when they make profits.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/86000-commercial-1-lakh-co-op-banks-to-go-on-strike/articleshow/7693898.cms