Privatisation of PSBs will affect priority sector lending, say union leaders

The proposal of the Union government to privatise public sector banks (PSBs) will affect priority sector lending and thereby hit small farmers, traders, rural and cottage industries and small industries, which are the mainstay of the national economy, said leaders of the United Forum of Bank Unions (UFBU). The government was planning privatisation of PSBs on the plea of mounting non-performing assets (NPAs) and to improve efficiency of banks. The laws for recovery of NPAs should be tightened and large corporate stressed assets should be made to pay up. Wilful default of loans should be made a criminal offence, UFBU State convener L. Chandrasekhar told the media here on Monday.