He termed as "faulty", the calculation of NPA in banks based on the criterion of the RBI and that of the Centre, in respect of default in non-payment of interest for six months and non-payment of principal amount for three years. These calculations borrowed from foreign countries were unsuitable for India, he pointed out. The loan melas and writing off loans had severely affected the credit culture in the country, he said adding the bank unions had suggested to the government to provide magisterial powers to bank officers to recover loans to reduce NPA.

Representatives of bankunions and the Indian Banks Association (IBA) were scheduled to meet at Mumbai on July 24 to take steps to implement the agreed wage revisionby 12.25%, he added.