Privatization Of PSU Banks Should Stop: Employee Union With 1 Lakh Members Urge President Of India
AIBOA has appealed to the President of India to advise the Council of Ministers to rescind the proposed moves to privatize two public sector banks (PSBs) and undertake strategic disinvestment in IDBI Bank.
The nationalized banks continuously contributed to the growth of the economy in the past 51 years, says the All India Bank Officers’ Association (AIBOA).
Nationalized Banks Contribution To Indian Economy
In a letter to President Ram Nath Kovind, S Nagarajan, General Secretary, AIBOA, emphasized that during the past 51 years, the nationalized banks continuously contributed to the growth of the economy and were instrumental in all developmental activities without exception.
According to him, that PSBs wholeheartedly supported the economic development needs of the country, implementing Government schemes and instructions to benefit the citizens at large.
He said, “the Public Sector Banks (PSBs) have stood the test of time….the wealth created in the nation thorough Public Sector Undertakings and also PSBs need to be protected and promoted,”.
Reportedly, the Government is considering privatizing the Central Bank of India and the Indian Overseas Bank.
During the last 25 years, in order to save the savings of the common people, private sector banks, on their failure to fulfill the obligations, were taken over by PSBs, noted by Nagarajan.
So, “the rescue of the private sector banks from the woes of mismanagement and mal-administration was only through the merger with PSBs,”.
Disinvestment in IDBI Bank
So far, since 1964, IDBI Bank has been continuously serving the financing needs of the nation initially as a development financial institution and later as a bank.
But recently, it has been weighed down by bad loans to the tune of nearly Rs 36,000 crores.
On top of that, its present state is due to policy paralysis in the matter of recovery of bad loans, as opined by Nagarajan.
He has reached this conclusion after four years of struggle and collective contributions made by the human assets.
Right from the sub-staff to the institutional head, the bank is out of red and also free from the prompt corrective action (PCA) and released from RBI restrictions.
“The recovery mechanism put in place by successive governments at the Centre have facilitated the borrowers not to pay loan availed by them. While the industry has become sick, the industrialists have become healthier and wealthy,” alleged Nagarajan.