Chennai, May 12 (IANS): Around 10 lakh bankers will go on strike on July 29 against the government's varied actions and inaction pertaining to the banking sector, said a top leader of All India Bank Employees'Association (AIBEA).

The decision to go on strike on July 29 was taken in the meeting of the United Forum of Bank Unions (UFBU) comprising all the nine unions in the sector- AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO, held in Hyderabad on Wednesday, he said.

"The central government is going ahead with the measures that would weaken the public sector banks, inadequate capital infusion, consolidation and merger apart from issuing new bank licences, privatisation of IDBI Bank and permitting more private capital in regional rural banks," C.H.Venkatachalam, general secretary, AIBEA told IANS on Thursday.

According to Venkatachalam, the total bad loans in the banking sector has risen to Rs.10 lakh crore.

Bulk of these bad loans are due from big corporate business houses and no serious action is being taken to recover the money, he said.

Venkatachalam said the bad loans are being provided or written off against the profits of the banks so that they report a loss.

He demanded criminal action against wilful defaulters of bank loans.

There are over 7,000 wilful defaulters owing Rs.60,000 crore to the banking sector, Venkatachalam added.