- September 5, 2022
- Posted by:
- Category: Uncategorized
The Maharashtra State Bank Employees Federation (MSBEF) on Monday opposed ‘loan melas’ organised by state-owned banks, saying that credit granted without much diligence at such events lead to pile-up of non-performing assets.
Such ‘melas’ add to the retail Non-Performing Assets (NPAs) for the lenders as the loans are granted without much diligence, MSBEF said in a statement.
The statement comes on a day when Union minister of state for finance Bhagwat Karad is attending one such mela in Maharashtra’s Aurangabad, where public sector lenders are targeting to distribute Rs 2,900 crore of loans.
Stating that past experience suggests borrowers stop repayments for such loans, the MSBEF said, no political party helps in the loan recovery process.
“The same political parties demand for waiver of those loans so as to appease voters” during elections, it said, adding that such events vitiate the recovery atmosphere.
Public sector banks are put into crisis through NPAs, and the same is used