Sunday, September 17, 2017

Need to name & shame rich defaulters, says minister

17/09/2017

PUNE: There is a need to change the banking manual when it comes to naming and shaming defaulters, Satyapal Singh, the newly appointed minister of state for human resource development, said.

The minister was in the city to celebrate the Bank of Maharashtra’s 83rd foundation day, an event for which was held at Balgandharva Rangmandir auditorium.

"When some poor man takes a loan, all people come to know about it. But banks do not reveal the names of big corporates defaulting. Therefore there is a need to change the banking manual," Singh said, adding that banks go soft on big borrowers and even co-mingle with them, but send thugs to the homes of poor borrowers.

Speaking on the occasion, BoM's chief Ravindra Marathe said, "The bank is at the crossroads with rising non-performing assets, competition from small banks and non-bank financial companies, and subdued credit growth. But these are not insurmountable challenges." He said the bank is trying to work its way out of the woods and has reviewed all its internal structures while trying to ring in accountability and transparency.

The bank has been put under the prompt corrective action by the RBI as its gross NPA's have accelerated to about 19% in the quarter ended June 30, 2017 from about 13% in the year ago period.


The bank hosted its past and present employees, felicitated family members of two soldiers killed in action and presented a plaque containing the bust-sized pictures o f Praram Vir Charkra heroes to several educational institutes in the city.

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