Bank unions against loans for rescue action | india | Hindustan Times
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Bank unions against loans for rescue action

india Updated: Jan 15, 2009 21:49 IST
Mahua Venkatesh
Mahua Venkatesh
Hindustan Times
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It may not be easy for state-owned banks to fund disgraced Satyam Computers in case there is any effort to use loans to help the beleagured IT company tide over a cash crunch.

Trade unions in the banking sector have threatened to take “severe action” in case the government goes ahead with such a plan, saying a fraud-mauled company does not need state money while many small firms languish for credit.

As of now the government is not talking of funding a rescue, though it was being considered a couple of days ago. But the unions are taking no chances.

Government officials have been mulling all sorts of measures to help stability and revival and Satyam, which employs about 53,000 employees, and especially needs money to fund salary payments after the company was hit by the country’s biggest corporate fraud this month.

Several companies in both public and private sectors have faced closures due to the global meltdown, the All India Bank Employees Association (AIBEA) said.

“There has been no plan to rescue them. This has also led to large number of employees losing their jobs but the government has not come forward,” said C H Venkatachalam, secretary, AIBEA.

He said the IT firm has not been impacted by the slowdown in the economy but there has been a deliberate move by erstwhile chairman B Ramalinga Raju to forge documents to superficially inflate revenue and profit figures.