Bad loans under litigation rise 10 per cent: All-India Bank Employees Association

MUMBAI: Bank employees union today claimed that bad loans under litigations have gone up by 10 per cent to Rs 77,000 crore.

Total amount of bad assets where suits have been filed rose to Rs 77,000 crore at the end of September 2013, as against Rs 70,300 crore six months earlier in March, All-India Bank Employees Association ( AIBEA) vice-president Vishwas Utagi told reporters here.

AIBEA released a list of defaulters including names of several industrial houses and airline firms.

With an outstanding of Rs 2,673 crore (of the total Rs 7,500 crore in dues to 17 banks) stuck in litigation, Kingfisher Airlines bagged the numero uno position in the top defaulters list, which runs to 4,400 accounts, he said.

"The list is prepared by the Reserve Bank itself but I fail to understand why they do not make it public. We got hold of it from our sources and are bringing it out in public interest," Utagi said.

Alleging that there is a connivance between bank managements and companies' promoters which is causing the trouble, Utagi expressed concern about the depositors' hard earned money being wasted in this way.

Commenting on the recent announcements in the banking sector, including Finance Minister Arun Jaitely's hint of getting the government stake in state-run lenders down to 51 percent, Utagi said concerted attempts are being made to change the character of such institutions under the guise of reforms.

The AIBEA will be holding demonstrations across the country tomorrow on the occasion of the 45th anniversary of bank nationalization to protest against the government plan to change the character of nationalized banks, he said.

Apart from that the bank employees' body will also be deciding on the further course of action during a national executive meet to be held in Kolkata in the first week of August, Utagi added.