The Hindu Business Line : Staff union assails SBI stake takeover by Centre

Thiruvananthapuram, July 1 State Banks’ Staff Union, Kerala Circle, has flayed the Centre’s Ordinance taking over Reserve Bank’s 59.73 per cent stake in State Bank of India (SBI).

The ordinance will weaken the public sector character of SBI. In fact, this is a move to sell SBI shares and privatise the bank, according to Mr John Joseph, General Secretary of the union.

He alleged that the Centre was preparing the ground for selling SBI to international capitalist forces and the Ordinance was part of the Centre’s policy to bring in privatisation in all sectors.

He noted that SBI had helped the RBI to a great extent in implementing government policies in the country’s economic sphere. The RBI was able to do this through the nearly 10,000 branches of SBI in the country.

Besides, whenever there were crises for the Centre in its foreign exchange management, the RBI had assured the Government of SBI’s interventions. The Resurgent India Bonds issued by SBI was a case in point, Mr Jospeh said.

It being so, the move to take over SBI shares and later on privatise the bank was suicidal. The All-India State Bank of India Staff Federation had submitted several memorandums to the Government against it and had also stated before the Lok Sabha Subject Committee about its adverse effects when the SBI Act Amendment Bill was referred to it. As per the existing SBI Act, a minimum of 55 per cent of the shares should be kept with the RBI.

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