Demands on 11th Bipartite – Real Drag on Banks
11th BIPARTITE SETTLEMENT : CHARTER OF DEMANDS – BULGING BAD LOANS – THE REAL DRAG ON THE BANKS
BULGING BAD LOANS – THE REAL DRAG ON THE BANKS:
While all the Banks have been performing well in the given circumstances, the alarming increase in Bad loans and Non-Performing Assets have been the main issues that have been adversely impacting the profitability of the Banks.
The Table VIII below shows the enormity of the bad loans that is engulfing the banks and eclipsing their performance.
The main income and revenue for the Banks are on account of the interest received on loans and advances. When huge amount of loans are getting sour and turning bad and yielding no revenue, the total income of the Banks is getting reduced drastically year after year and affecting the profitability of the Banks.
But, ordinary rank and file employees are in no way involved in grant of such loans and hence are not responsible for the same. Hence the burden faced by the Banks on account of bad loans by such huge loan defaults should not be put on the shoulders of the employees when their claim for better wages are dealt with.