The concessions offered to private sector lenders in operation processes in the budget session recently has angered the other sects of bankers. In response to their discontent, around 86,000 commercial and 1 lakh cooperative banks have decided to go on a strike in the next parliamentary session, said a senior official of the All India Banking Employees Association (AIBEA).
According to AIBEA General Secretary C H Venkatachalam, outstanding loans of banks still amount to more than Rs 65000 crore. This he said would lead to bad debts and be written off thus being a causal for heavy losses incurred by banks.
Since the loans were paid from deposits as well as savings made by public in banks, so such a case would also lead to problems to banks in returning savings as well as interests to customers, said Venkatachalam.
According to him, steps should be taken by government in funding non functional banking units as well as offer tax relief to cooperative banks.