Signature campaign by Bank Staffs

Cuddalore: The bank employees will launch a nationwide campaign from June to August to urge the nationalised banks to recover Rs.1,00,000 crore in "bad debts" and fulfil the objectives for which they have been formed.During the campaign, to be launched under the All India Bank Employees' Association (AIBEA), over one crore signatures will be collected from the public and handed over to the Prime Minister, according to C.H. Venkatachalam, general secretary of the AIBEA.

Addressing a press conference here on Saturday, Mr. Venkatachalam said the bank deposits, amounting to Rs.25,00,000 crore, should be utilised for the welfare of the people.But the banks seemed to be pampering the big industrialists and political class, and because of their clouts, the banks found it difficult to recover the advances from them.Thus, they were saddled with bad debts or non-performing assets to the tune of Rs.1,00,000 crore.While the banks had pegged the interest rate on savings bank accounts at 3.5 per cent and 7-8 per cent on fixed deposits, they were offering 12.5 per cent interest on deposits from the affluent sections.

Mr. Venkatachalam said this was a clear case of disparity and discrimination. Though it was enjoined upon the banks to allocate 40 per cent of the advances to the priority sectors, including 18 per cent to the farm sector, they hardly complied with it.Hence, the banks' share in the farm sector had come down to 13 per cent.Moreover, the high rate of interest at 8 per cent on farm loans had a deleterious impact on the farm sector, which had stunted its annual growth at around 2.7 per cent.It was a sad commentary that the banks, which triggered the Green and White revolutions, had started relegating agriculture to the background.Despite writing off Rs.9,000 crore in bad debts last year, the banks had made profits owing to efficient staff.

Even while one-lakh vacancies existed, the banks were keen on outsourcing manpower, a move that would affect the confidentiality clause, Mr. Venkatachalam said. Once the foreign direct investment was allowed, the sway of the private banks over the monetary policy would be unchallenged.If there were any attempt to privatise the banks, the bank employees would go on a strike, Mr. Venkatachalam noted.