Money & Banking

AIBOA appeals to President of India against privatisation of two PSBs

Our Bureau Mumbai | Updated on June 25, 2021

During the past 51 years, nationalised banks continuously contributed to the growth of the economy, says AIBOA

The All India Bank Officers’ Association (AIBOA) has appealed to the President of India to advise the Council of Ministers to rescind the proposed moves to privatise two public sector banks (PSBs) and undertake strategic disinvestment in IDBI Bank.

S Nagarajan, General Secretary, AIBOA, in a letter to President Ram Nath Kovind, emphasised that during the past 51 years, the nationalised banks continuously contributed to the growth of the economy and were instrumental in all developmental activities without exception.

Also read: NARCL to further Govt’s agenda of disinvestment of IDBI Bank, privatisation of PSBs

He observed that PSBs wholeheartedly supported the economic development needs of the country, implementing Government schemes and instructions to benefit the citizens at large.

“The Public Sector Banks (PSBs) have stood the test of time….the wealth created in the nation thorough Public Sector Undertakings and also PSBs need to be protected and promoted,” he said.

The Government is reportedly considering privatising Central Bank of India and Indian Overseas Bank.

Nagarajan noted that during the last 25 years, in order to save the savings of the common people, private sector banks, on their failure to fulfil the obligations, were taken over by PSBs.

“The rescue of the private sector banks from the woes of mismanagement and mal-administration was only through merger with PSBs,” he said.

IDBI Bank

IDBI Bank, which has been continuously serving the financing needs of the nation since 1964 (first as a development financial institution and later as a bank), has been weighed down by bad loans to the tune of nearly ₹36,000 crore, and its present state is due to policy paralysis in the matter of recovery of bad loans, opined Nagarajan.

He underscored that after four years of struggle and collective contributions made by the human assets, right from the sub-staff to the institutional head, the bank is out of red and also free from the prompt corrective action (PCA) and released from RBI restrictions.

Nagarajan alleged that, “The recovery mechanism put in place by successive governments at the Centre have facilitated the borrowers not to pay loan availed by them. While the industry has become sick, the industrialists have become healthier and wealthy.”

ends

Published on June 25, 2021

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