The Hindu Business Line : Govt urged to advise public sector bank on UWB takeover

The All-India Private Sector Bank Officers' Federation (AIPSBOF), a wing of All-India Bank Officers' Confederation, has urged the Union Government to advise a public sector bank to take over United Western Bank (UWB).

In a letter to the Prime Minister and to the Governor of the Reserve Bank of India - copies of which were released to the press here on Monday — Mr T.R. Bhat, President of AIPSBOF, said UWB has branches in the interior parts of Maharashtra, and a takeover by a PSB will help it to reach out to the marginalised population in such areas.

He said PSBs continue to be financially strong to absorb the after-effects of takeover with least dislocation to the staff.

Merger suggested

The letter also suggested that in the background of the frequent instances of moratorium (Nedungadi Bank, Global Trust Bank and UWB) during the last five years, it is time the RBI to seriously work out a scheme of merger of the old private banks with the PSBs.

"Arising out of this development, we urge that the other old generation banks may also be allowed to be taken over by the PSBs. As the RBI is aware that the old generation banks are virtually like PSBs in terms of the location of their branches and business profile. If they are taken over by new generation banks or foreign banks, these old banks will cease to be instruments of financial inclusion. Therefore, it is logical that the old banks are taken over only by the PSBs," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee strengthens against dollar

`Asian banks better placed to counter crisis'

NSE member picks up 7 pc stake in United Western Bank

Anti-money laundering norms hit rural insurance

RBI review of economy — Revitalising farm sector is the key

Citigroup takes award beyond India

Bond prices fall on profit taking

Bankers seek Tier I status for floating provisions

Call rates remain unchanged

SBH deposits mobilisation fortnight

AIBEA seeks probe into sick banks

Govt urged to advise public sector bank on UWB takeover

RBI Governor meets Chidambaram