The All India Bank Officers’ Confederation (AIBOC) has urged the government to introspect and reverse it policies which could lead to collapse of the banking system.

Questioning the need for the bankers’ meet, D Thomas Franco, General Secretary, AIBOC, said: “The last two Gyan Sangams have not helped the banks improve. The Bank Boards Bureau has failed and two members have resigned. NPAs are mounting and the Insolvency and Bankruptcy Code is not helping banks.”

He said credit offtake would pick up only if it is extended to a larger majority. “Only 19 per cent of the eligible people have access to formal credit at present. MSMEs are suffering due to government policies; GST is impacting them, as they are unable to get the input tax credit on time to pay advance taxes and claims,” he said.

On financial inclusion, Franco said, “This requires education, and financial inclusion is not merely about opening accounts.”

Against mergers

The Confederation is opposed to the idea of bank mergers and consolidation. Urging the government to amend this idea, Franco said, “If NPAs are recovered, there will not be any need to infuse capital. Consolidation through mergers would only increase NPAs and losses.”