Briefing reporters after the conclusion of the 37th executive committee meeting held here on March 9 and 10, AIBOC president Shantha Raju said the executive committee expressed its "deep concern over weakening of united movement of employees under the banner of United Forum of Bank Unions (UBFU)."

Raju said AIBOC would launch an awareness campaign on the demerits of privatisation of public sector banks from March 15, 2000. According to him, privatisation would lead to dilution of priority sector credit, slowdown in branch expansion and neglect of the common man's credit needs. AIBOC estimated NPAs of public sector banks to swell to Rs 58,000 crore by March 31, 2000 from Rs 51,710 crore on March 31, 1999. It claims that defaulters among big borrowers enjoy "official patronage and support which in the ultimate analysis left financial institutions in dire distress."

Raju maintained that even if 50 per cent of the estimated NPAs was recovered from the large borrowers it could take care of the capital adequacy needs of the weaker banks. If the big borrowers were forced to pay up nearly Rs 45,000 crore would come back into the system, of which Rs 20,000 crore could be repaid to the government to settle the recapitalisation funds given to the industry earlier, he added