Save Pvt Bank Depositors: TUs

New Delhi, July 25 | Updated: Jul 26 2004, 06:02am hrs
Bank unions on Sunday asked the government to take adequate measures to protect the depositors money in private banks in the wake of RBIs decision to place the Global Trust Bank (GTB) under moratorium for three months.

We are not all surprised by what happened in GTB as such banks are liberal in sanctioning loans and lax in recovery, VK Gupta, the Delhi convenor of the United Forum of Bank Union, the umbrella organisation of nine unions said. He said as a result of lack of stringent measures many of the such banks accumulate non-performance assets soon after being set up.

Mr Gupta said the government should immediately take measures to ensure safety of funds of depositors in private banks.