Banks have lost Rs 2.85 lakh crore due to the loan default of 13 enterprises

Banks have lost Rs 2.85 lakh crore due to the loan default of 13 enterprises  According to the United Forum of Bank Unions, public sector banks have lost approximately Rs 2.85 lakh crore due to loan defaults by 13 corporates, despite the fact that the banks are being used to bail out troubled financial institutions such as Yes Bank and IL&FS. The UFBU's Convener B Rambabu said in a news statement that the organisation is calling for a two-day all-India bank strike on December 16 and 17 to protest the Banking Laws (Amendment) Bill 2021 and the center's purported plan to privatise PSBs. According to the UFBU, the outstanding dues of the 13 corporations were Rs 4,86,800 crore, and they were settled for Rs 1,61,820 crore, resulting in a loss of Rs 2,84,980 crore. "It is also a fact that public sector banks have been utilised to bail out failing private sector banks such as Global Trust Bank, United Western Bank, Bank of Karad, and others on several occasions. Yes Bank was the most recent bank to be bailed out by the public sector SBI. IL&FS, the largest NBFC in the private sector, was bailed out once more by public sector SBI and LIC," he remarked. According to him, PSBs participate in the bulk of government programmes and initiatives, including Jan Dhan, MUDRA for unemployed young, Swadhan for street sellers, Pradhan Mantri Awas Yojana, and Pradhan Mantri Jivan Jyoti Yojana. As a result, the UFBU believes that privatising public sector banks will jeopardise the interests of the ordinary man and the country's backward regions, he stated. The UFBU stated that if the government moves on with the Bill in Parliament to privatise the banks, bank employees and officers are willing to go to any length, including an indefinite strike, to oppose the privatisation of banks because it is harmful to the nation's and people's interests. Despite the fact that PSBs' operating profits are in good shape, the primary problem they face is a large number of non-performing assets (NPAs), with larger corporations accounting for the majority of them, according to the organisation.