New Delhi, Jan 15 (UNI) The Communist Party of India (Marxist) on Tuesday expressed concern at what it described as, ``unseemly haste’’, with which the government was going ahead with the merger/amalgamation process of three nationalised banks including Vijaya Bank, Bank of Baroda and Dena Bank.
The merger process is underway ignoring the collective opposition of the employees and officers of the industry, the party's Politburo said in a press release issued here.
Opposing the merger, the party said that the unification of banks is being justified on ground of strengthening and consolidating the concerned banks; but in reality, such a step will further weaken the concerned banks post merger.
It said that the problems of public sector banks emanate from deliberate default in loan-repayment by big corporate houses.
``The solution lies in government taking strict action for recovery of the huge loan amounts from defaulter corporates with penalty, instead of indulging in the futile exercise of merger,’’ the party said.
The party accused the government of being ``indulgent’’ to defaulting corporates and through the Insolvency and Bankruptcy Code (IBC) procedure public sector banks were being forced to accept big reduction on default loan amount, it said.
It called upon the government to desist from such moves.
UNI GP ADG 1755