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Business EconomyPosted at: Jul 22 2020 9:19AM


Privatisation of Banks is anti-thesis to atma nirbhar Bharat, AIBEA to fight back : Venkatachalam

Hyderabad, Jul 22 (UNI) All India Bank Employees' Association (AIBEA) on Wednesday termed the reports of privatisation of banks by the Centre as anti-thesis to Atma Nirbhar Bharat and said it will fight back by observing repeated strikes to draw the attention of the people and the Union government.
Once again, there are reports in the press and media about some reported move by the government on privatisation of public sector banks.
It is unfortunate that at a time we are celebrating the 51st anniversary of bank nationalization and recalling their glorious contributions, such a news about Government’s thinking on privatisation of banks is being floated, AIBEA General Secretary Ch Venkatachalam said in a release.
He said equally it is ironical that when AIBEA has released the names of 2400 wilful bank loan defaulters who all are private companies, the reports are emanating that Banks would be privatized which means that it would be handed over to these very same private companies who are the defaulters.
In fact, as all of us know, that loans are given by the banks from the savings of the Depositors who keep their money in the Banks. Now, the people who defaulted the loans taken out of the people’s savings, will become the custodians of the savings of the Depositors.
Mr Venkatachalam said one cannot forget the bitter experience of the 1940, 1950 and 1960s when hundreds of private Banks collapsed due to mismanagement by the owners of those private Banks.
One cannot forget the past that in the wake of these repeated failures of private banks, AIBEA led a powerful agitation and the then General Secretary of AIBEA Com Prabhat Kar, who was also a Member of Lok Sabha from 1957 to 1967, strongly took up the issue in the Parliament due to which, a special provision, Section 45 was added in then Banking Regulation Act in 1961-62 which enabled the RBI to recommend to the Government to clamp moratorium on such failing Banks and to merge them with another Bank.
Because of this, people’s money was safeguarded due to the timely effort of AIBEA, he added.
Similarly, the demand for nationalization of banks was also because of the failure of private banks. In the last four decades, so many private banks had failed and merged with another Bank, mostly with a Government Bank.
Even recently we have seen the episode of Yes Bank. It was painted as a glorious private Bank. Now everything has come out. And, SBI had to bail it out, he said.
On the ICICI Bank, the AIBEA General Secretary said how that Bank was managed or mismanaged, under the leadership of the previous Managing Director Ms. Chanda Kochar is known to all now. Hence there is a case for nationalization of private Banks. But unfortunately, there are talks of privatisation.
''From AIBEA, we are strongly of the view that privatisation is not the solution to the problems of public sector banks. The recovery of huge loans given to private corporate companies is the solution.
We need to take stringent measures to recover these bad loans and save our Banks. Handing over the Banks to the very same private sector which is responsible for the Himalayan bad loans would be most retrograde.
Hence we shall oppose any such proposal to privatisation of our Banks. We shall observe repeated strikes to draw the attention of the people and the government.
We should never allow that'', the top union leader lamented.
UNI CS 0912
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Tags: #Privatisation of Banks is anti-thesis to atma nirbhar Bharat# AIBEA to fight back : Venkatachalam
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