Tags:
Journalism of Courage
The more one thinks of it, one can only support the bank unions8217; charge that industry associations want banks shut down in order to avoid paying back their dues. The CII recommended closure of Indian Bank, United Commercial Bank and United Bank of India would involve retrenchment of 75,000 workers.
Contrast this with the situation of companies which are rescheduling loans and seeking bailouts. None have been forced to cut costs or retrench staff not even a compulsory VRS. One of the most beleaguered corporate group in the country shows a hefty increase in its wage bill. The minutes of the heads of institutions8217; meetings seldom, if ever, discuss retrenchment or cost cutting.
Management change is a no-no. Instead the institutions are now financing the takeover of group companies so that fresh lending can be justified and NPAs avoided. Now that the bank unions are talking tough and the FM claims that he will not bailout sick banks, it will be interesting to see if any tough debt recovery action is alsoinitiated.
