Excelsior Correspondent
JAMMU, Mar 4: The menace of bad debts which includes non performing assets as well as restructured portfolio is having an adverse impact on Indian banking which will be in need of infusion of capital in near future because all the banks will have to become BASEL III compliant by 2019.
This was stated by Riyaz Bhat, President, JKBOA in a handout issued here today.
He added that Government of India (GoI) has been proactive enough to visualize this need of Public Sector Banks (PSB) so that sudden need may not jeorpadise the State owned character of these banks in future.
“Sensing that present crisis is a result of contributory factor of governance issue of these banks, GoI has also constituted a banking regulation authority to look after the governance issues in these banks so as to insulate them against political interference and professionalize their Board of Directors (BOD) by adding men of competence”, he said, adding that the State Government of J&K still seems not having been awakened up to the problem of capital infusion need of its owned financial institutions including J&K Bank which may arise in near future.
He called upon the State Government to start making provisions in annual budgets so that a corpus is created to meet the recaptilisation needs in its owned FIs in future.
JKBOA is hopeful that the elected public representatives of the State will lend support to our voice raising these important issues before the Government to safeguard the interests of the subjects of State in general and staff of financial institutions like J&K Bank in particular, he added.
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