Federation urges govt to stop privatization of banks


Pics: Meryick D'Silva
Daijiworld Media Network — Mangalore (MD)

Mangalore, Jul 20: The Karnataka unit of Bank Employees’ Federation of India urged the central government to stop the privatization of public sector banks in a press meet that was organized on Saturday July 19 at Press Club here.

The joint secretary of the state branch B M Madhava gave a call to save the banks.


He said, “After the nationalization of banks, the public sector banks have performed remarkably well. They have withstood the global financial meltdown in Western countries and Europe wherein major financial institutions of these countries had to be shut down and still not a pie of any depositor in our country was affected. A report of RBI shows that as of March 2012, the complaints per branch of the public sector banks is less than that of private banks as well as foreign banks.”

“As a motive to earn more profits for the banks, the government, along with the management of the banks, is trying to unsettle the basic architecture of the banks by paving the way for privatization. Already, some of the services have been outsourced and the central government has reduced its holdings to 51 percent,” said Madhava.

“This will only hamper the basic principles of Indian banking and take away the power to face the global crisis. The union, along with some of the political parties in the Parliament and others, will fight to prevent the privatization of the banks,” he added.

State committee members Rajesh Achar and B V Giri were present on the occasion.
  

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Comment on this article

  • KRPrabhu, Bangalore

    Mon, Jul 21 2014

    Compared to private banks all PSU banks are poor performers in terms of total business,NPA,prfitability,per employee business,per employee NP etc., This is so because PSU staffers are protected by job safety,regular salary hike irrespective of poor performance etc.,Luxury ejnjoyed by them jas made them lazy and trend is irreversible.Country's biggest bank SBI's para meteres in respect of above mentioned criterias are still poorer tha other PSU bank.Though they advertise for various loan products ,take much long time to process and sanction loans like hsg loans,vehicle loan etc, normally more than a month where as other banks do this job in much lesser days that too for known customers with good track record quickly.To day banks like HDFC,ICICI,Axis bank,Cit Bank are having accounts of all most all major corporates including salary accounts of their employees.In Bangalore all big IT companies have their banking accounts with only with above private banks for the reason of quick,good service.Need is reforms in banking industry either by furthering private participation or merging few low performing banks with strong banks.Sakala scheme shoula also be introduced in all banks which guarantees services of various type with in specified time limit.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Tony Fernandes, San Francisco/Udupi

    Mon, Jul 21 2014

    Government roll in any Country should be regulating commerce & Business, monitoring business/commerce, collecting tax not running business. When government does business productivity will be lost, corruption will skyrocket, In India Government Banks do not take business risk, Government Banks are protected by peoples tax money so the Banks will not fail, Airlines, Banks & all commerce including oil & gas, Shipping should be privatized for the common good of all Citizens.

    DisAgree [2] Agree [2] Reply Report Abuse

  • stan, dubai

    Sun, Jul 20 2014

    Privatization of Banks and Air India is Good for Indian economy. Huge balance of NPA (non performing advances) in Public sector Bank and Loss making Air India, but no one is taking responsibility...If it is privatised than it will be controlled.

    DisAgree [2] Agree [7] Reply Report Abuse


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