The Hindu Business Line : `Time for global banks to take cue from Indian peers'

IT is time for the international banks to take lessons from Indian banks as to how to face situation of crisis and come out strong, according to the President of the All-India Bank Officers' Confederation (AIBOC), Mr R.C. Agarwal.

Addressing presspersons here , he said that public sector banks (PSBs)had performed in spite of all negative propaganda and forceful implementation of international accounting standards. In such a situation, there was no justification for the merger and acquisition of public sector banks, he said.

"In banking industry, it is not the size but the performance of the bank matters," he said.

Though the Union Finance Minister had made a statement five months ago on the need for merger and acquisition of PSBs and repeated it several times after that, no ally of the UPA Government or board of any PSB has come forward in support of his statement, he said.

Mr Agarwal said PSBs have outperformed all international banks during the period of unprecedented recession in the world. PSBs have achieved more than 12 per cent of capital adequacy, less than three per cent of net NPA, and more than 500 per cent increase in the net profit level in the last five years.

He said though India has decided to implement Basel II norms from March, developed countries have said that they are not in a position to implement it till March 2007.

He promised that the bank unions are ready to sit across the table and discuss all issues, including FDI, with the Government.

Mr Agarwal said that MoU for load factor of wage revision settlement of officers was signed on November 23, 2004, effective from November 1, 2002. Details for the distribution of load in various parameters are being worked out and the final settlement is expected to be concluded by March 31, he added.

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