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The All India Bank Employees' Association (AIBEA) has advised its members against buying bank shares when offered under the Employee Stock Option (ESOP) / Employee Stock Purchase Scheme (ESPS).
Stating that offering ESOPs or ESPS are aimed at reducing the Government's stake in the equity of public sector banks, the AIBEA General Secretary, C H Venkatachalam, observed that for the first time in the recent budget, no funds were allocated to capitalise the public sector banks in the country, though the Government had stated time and again that banks would need huge capital in the coming years.
"To placate our opposition to such dilution of ownership, the Government and bank managements are now proposing to bring the ESOP/ ESPS, and offer shares to employees at discounted rates.
While on the one hand, such options are expected to give the employees a sense of ownership, we know that purchasing a few shares will not make them owners. Further, we are committed to work for the bank and not indulge in speculation,'' he said and reiterated the association's decision against dilution of government's stake in PSBs.
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