? Stop all Govt subsidies, facilities to wilful defaulters
Hyderabad, Jul 6 (FN Representative) Declaring that Trinamool Congress (TMC) party will oppose the privatisation of Public Sector Banks (PSBs) by the Centre, its Rajya Sabha member Sukhendu Sekhar Roy said that the Centre should stop all government subsidies and facilities to wilful defaulters and announce them as enemies of financial stability of the country. Sharing his perspective on the ’empowerment of the Public Sector banks’ on the fifth day of the month-long AIBEA National Webinars to commemorate the 52nd anniversary of Bank Nationalisation on theme ‘Vibrant Banking for Vibrant India’ and focus ‘people’s money for people’s Welfare’, on Monday night, he said that the BJP-led NDA government was for proceeding with privatisation of Public Sector Banks despite the fact that many empirical evidences would negate the baseless logic behind such a policy.
Mr Roy said there was an erroneous assumption on the part of policy-makers that private sector banks were rendering more efficient services to the economy and people whereas the truth was on the opposite. In financing farm sector, or small business and industrial enterprises or infrastructure, PSBs were in the forefront. In priority sector lending, Public Sector Banks are playing a direct and dominant role. The fact is that private domestic investments in various sectors that had taken place earlier and now were funded by the Nationalized banks only, the TMC leader said. The MP from the upper house of Parliament said the allegation of under performance by Public Sector Banks was misplaced as it was only PSBs that under the directives of the Government extend financial support, interest concessions etc. to the households and businesses beyond the angle of profits. Even during the last two decades, many private banks including the new-era private banks had collapsed due to governance and management failures, Mr. Roy said.
Recapitalization of Banks had been necessitated by the loan defaults of the corporate customers only. The solution lied in effective recovery of bad loans, he said. The TMC leader elaborated on the government’s move of privatizing sectors including insurance, and several other departments just to satiate the never ending thirst of Corporates. He detailed the approach of the government wherein they pursue insolvency and bankruptcy code which appears hollow and addresses nothing but the Corporate agenda. Expressing concern over the current frequent bank scams, he said “if you will allow the Corporates to loot the money and run away, then this country will not survive.” The Speaker suggested alternatives to reduce the number of bad loans and uplift the condition of the banking sector in India and wanted AIBEA to pursue these issues. ‘Initiate Non-bailable criminal proceedings against the wilful defaulters, Confiscate the property of the wilful defaulters, their family members, their company, or the group of company irrespective whether they reside in India or have eloped the country, stop all Government subsidies and facilities to the wilful defaulters and announce them as enemies of the financial stability of the nation’, Mr Roy added.