‘banks unable to grant credit when needed’ | Ahmedabad News

Ahmedabad: With weakening lending capabilities, banks are unable to provide needed credit to industry, says Secretary General of All India Bank Employees’ Association (AIBEA) CH Venkatachalam. He was in Ahmedabad for the 15th triennial conference of the Maha Gujarat Bank Employees’ Association (MGBEA). According to the Secretary General of AIBEA, banks are unable to extend credit due to lack of capital, as most of the banks’ profits are spent on writing off bad debts.
Acknowledging the industry’s need for more credit, Venkatachalam said, “Banks are unable to provide the necessary credit. It’s because they don’t have enough capital. The majority of bank profits are spent on writing off bad debts. There is a need to strengthen banks by changing capital adequacy standards.
He said most of the banks’ non-performing assets (NPAs) came from the engineering, steel, coal, infrastructure and manufacturing sectors.
The triennial meeting was held to discuss an action plan against the proposed privatization of public sector banks.
“The banking regulations (amendment) Invoice should be deposited in Parliament in the next monsoon session. This will prove detrimental to the banking sector as it paves the way for the privatization of public sector banks,” said Janak RawalGeneral Secretary, MGBEA.

FOLLOW US ON SOCIAL NETWORKS

FacebookTwitterinstagramKOO APPYOUTUBE