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Editorial
Real face of the Industrialists

The representatives of Indian Industrialists have suggested closure of three banks - Indian Bank, UCO Bank and United Bank of India due to their huge non-performing assets. Confederation of Indian Industry publicity recommended to close down three banks instead of suggesting any revival scheme for these financial Institutions. The huge amount of non-performing assests could be labelled as their serious weakness. But what is the irony of the suggestion of Industrialists? Two of the CII's leadership, Mr. Rahul Bajaj and Mr. Bharat Ram together owe the banks a sum of Rs. 1000 crore. Instead of repaying the loans, which has contributed to the mounting non-performing assists, the motley groups of Industrialists have recommended the closure the local Banks. These Industrialists are taking cover under the secrecy clause in the banking Industry because the corporate defaulters owe over Rs. 50,000 crores to the nationalised banks in the country. Big Industrialists houses owe nearly 74 percent of sticky loans out of around Rs. 51,709 crore in the books of Public Sector banks as on March 31, 1999. If the weaker banks are close down, the Industrialists may get some chance to avoid repayment.

This ill motivation of Industrialists should be contested by the people all over the country. CII task force is not an official group. There is no government representative in this group. Govt. of India may form a task force to find out the position of the Public Sector bank and identify the causes of weakness. If the Big Industrialists promptly repay their loan, these banks may be survived with same promptness.

20th December, 1999.


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