 Can you tell us a little about the people's parliaments and what is the idea behind that? People's parliaments for unity and development is an initiative of all India bank offices confederation wherein we are trying to bring in all trade unions, non-governmental organizations, right-waste groups to have a debate at the grass root level starting from the district level on what kind of development this country needs at this stage after 70 years of independence and whether we have fulfilled the promises given in the constitution. The constitution promise that there will be a equal opportunity for all whereas we see quite a lot of contradictions in the development which has taken place. For example, the socio-economic and caste census says that 92 percent of the households, head of the family, the income is less than 10,000 rupees per month and in case of 75 percent it is just less than 5000 rupees whereas as per the credits which report 1 percent of the population is having control over 58 percent of the assets in this country. And banking sector there is a real dichotomy, one hand the senior executives in the banks are saying that there is no credit of take. On the other hand you go to the field, farmers are saying that they are not getting credit from the banks, workers are saying they are not getting credit, traders are saying they are not getting credit, women are saying they are not getting credit even for social groups, students are not getting education, time loans and youth in spite of talking about the mudra schemes and stand up India scheme, access to credit for the youth when they really want to try something is also not available. So, what is this dichotomy, where are we heading towards? This is an focal point with which we will start the debates at the district level, then come to state level and then they will have a national level Feeful's parliament for unity and development. Initially we started this idea on discussing only development then there was response from the Feeful that we should also talk about unity because today the unity in diversity is under attack in this country. Now here basically though we are entering with the debate on credit, we have decided that we will bring in this debate into a broader platform by debating education, health, employment opportunities, other public utility services, the role of public sector, the efforts to privatize the public sector enterprises and public sector banks, these will all become part of the debates. How in the agenda of people parliament, like why is banking sector involvement that is working and how can banking sector employees and officers, how can they contribute? After 1969 when nationalization took place, the banking sector especially the public sector has contributed a lot for the growth of the country by taking banking services to the rural areas, semi urban areas, providing credit to the common man access to banking services and their role is very important and unfortunately after the 1991 liberalization, privatization, globalization, the credit concentration has shifted towards the larger borrowers, large car ferrets. Just to tell you an example in 1991, out of the total credit 99.3 percent of the credit went to borrowers who were borrowing less than 2 lakhs. In 2016 it has come down to just 6.7 percent and 2016 in RBI data says that 11,643 borrowers whose credit limit is above 100 crores. They have got 36.17 percent of the total credit in the banking industry. That clearly shows that ordinary people are not getting credit and credit is available to the larger borrowers. This happened through a mechanism. The government slowly reduced the staff strength. For 10 years there was a band on recruitment. Then in 2001 there was a golden handshake. So, a lot of people left. So, within the banking system a field officer or a branch manager found it easier to give loan to a large borrower. For example, instead of giving 1 lakh to 100 people, you give 1 crore to 1 person it becomes easy for you too. So, that way the credit concentration has shifted from small people to the bigger people. Even the World Bank recently in its report on governance and democracy says that civil society organizations, trade unions, they have to raise this question on increasing income equality. So, that is how the All India Bank Offices Confederation thought that we will take that initiative but we will bring in all the banking sector unions or associations, financial sector trade unions, as public sector trade unions and also the non-governmental organizations. Apart from the broad objectives that you said, objectives of people's parliament, is there any concrete plan at the ground that you are going to, you already have the planning for? Exactly. At the district level we would like to have a kind of an inquiry with the people. Minimum we will be discussing with the group of farmers belonging to different categories of farmers. At least we will be having a dialogue with 100 farmers, 100 traders, 100 women, 100 workers, 100 youths, 100 students to find out what is the credit need and where from they are getting the credit. How they look at the development of the country? How they look at education opportunities, health availability, healthcare availability, employment opportunities which are diminishing. These areas also will be discussed and it will be presented in a district level people's parliament for unity and development. Then in that there will be dialogue from more number of people and as a follow-up at a minimum level in every district we plan to set up a support center which will give counseling on credit availability and also give opportunity for people to come together for larger debates and it will then spread to the further grass root level, block level, panchayat level and we will be discussing also the question of the democratic institutions which are at the grass root level. How much they are able to contribute? How much they can really take decisions? We talked about panchayat raj institutions as giving power to people. Whether that has really happened there is a total difference between Kerala and other states. These issues also will be discussed at the grass root level. So we hear this whole discussion about head cuts. Public sector banks are forced to take head cuts on the NPAs that align with them and we hear that in the in the case of loans where banks have, public sector banks have taken head cuts the actually the share prices of companies actually gone out because of the loan but it has gone down. So looks like the buyer of the company is fine, the seller of the company is also fine, it's the public sector banks that are going to be affected. So is there any alternate to this head cut? It's very unfortunate that when you write off small loans for the farmers you call it write off and people make a huge even cry that the credit repayment trend will go down. Where actually the money is given by the government to the banks to write off the loans. But here in the case of this corporate NPAs you are calling it hair cut where the bank is losing its own fund it is deposit as money and they have found this beautiful word hair cut. It's very unfortunate. In the case of the non-performing assets already the RBAs report, let us report on financial stability says that 86.4% of the large NPAs are belonging to the corporates. In the case of the insolvency and bankruptcy code the prompt corrective action promoted by the Reserve Bank of India and now referring this cases to the national company Lord Tribunal all are attempts to only write off and not for really recovery. That is very unfortunate. It is going to put a big strain on the banking sector and these loans were not given on the decision of the banks alone. Many of them are director credit when the development financial institutions were taken away like the ICICI, IDBA and that time the public sector bank had to come to fill up that gap and government was forcing to lend to infrastructure, steel, power, telecom. Now they are saying suddenly that telecom is a stress factor you should create provision for that. One unfortunate thing in these 12 cases which have been already referred to NCLT the RBA has given instructions to the bank that you create provision of 50% this financial year itself and next year another 50%. That means you are writing out the 100% total loan and I will quote to one example ocean steel their outstanding is around 43,000 crores to 45,000 crores. I was discussing with a MD of a bank and he was saying that even today they have at least 23,000 crores worth of properties assets so you can recover that instead of that you are planning for writing out so what actually is happening is that you are helping those defaulters right of the loan tomorrow they will form another company they will change the nomenclature and again they will come back to the banking sector for loan and probably banks will be forced to lend to them. I will tell you an example of SR. SR was an NPA the loans were written off now SR steel is once again classified as an NPA this is what has exactly happened the parliament standing committee on finances clearly recommended what is to be done so beautiful report probably 2016 it was submitted to the parliament nothing is implement they are talking about strengthening the recovery mechanism strengthening the surface he act taking action on the borrowers see in a corporate the board of directors they have huge assets then they have said that once again bring in the development financial institution they have suggested a very good recommendation that all this infrastructure loans which are larger loans let the industrial finance corporation take over that way the balance sheets of the banks get clear convert them into a longer repayment time loan and let them follow up and recover it let them also come out with ways and means to see whether these some of these companies can be revived like steel sector I am still confident that that can be revived because you allowed import of steel from China and that affected similarly power sector it is possible you are always giving support to certain groups that is very unfortunate when Adani group wants to revision in tariff you are going and helping them so the way out is to think on the other way around instead of writing off how do we recover how do we assist this institutions to pay back see all the corporates are not really willful defaults many of them given an opportunity they will definitely put in extra efforts to turn around that effort is not taking place that is unfortunate do you think this whole thing of write off is it like a sound conspirator but is it because they want to undermine the public sector today we have a set of people who are governing this country Nithya yo finance ministry the sure bank of India and multinational consultants all belong to a particular school of thought that is called the Chicago School of Thoughts or Milton Friedman School of Thoughts where they say that there is no need for government to work in all the sectors government's role should be minimum and market is better and you should hand over things to the private sector prime minister made a statement in an India today conclave that government has no business to be in business then he also made another statement where he said that public sector was born today so this is the ideology which is working and all this four constituents are speaking on the same line so it is only to show that public sector banks are not doing well they are defaulting they are not able to recover the NPA so liquidate them now the latest attempt they are bringing in is the financial resolutions and the faucets insurance will where they are creating a provision for liquidating state bank of India liquidating public sector banks liquidating LIC GIC by liquidation what does it mean is it going to happen that these banks will not remain anymore no they will be there but not as public sector but they might become a reliance bank or Adani bank or Tata's bank that way it will be once again handed over to the private sector from whom we took over in 1969 because the private sector could not cater to the need of the country so we require a larger fight to see that this sectors remain in public so that the larger masses of the country get the real benefit of development.