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Kerala Finance Minister Thomas Isaac said that the Centre has resorted to some extreme measures which have had the effect of demeaning the integrity of public sector banks.
The net results are increasing bad loans as well as merger of banks, with its own adverse impact, he said in a message to the 25th all-India triennial conference of the Corporation Bank Employees' Union (CBEU).
In a wider global scenario, the public financial sector is being hijacked and, as a result, the Indian economic systems are being redesigned by neoliberal values and principles.
'Far-reaching impact'
The two-day conference here deliberated on several issues and challenges confronting the public, along with appropriate action plans on issues affecting the banking industry and welfare of employees.
Inaugurating the conference on Saturday, CH Venkatachalam, General Secretary, AIl-India Bank Employees Union (AIBEA), said that bank merger efforts have always had far reaching adverse implications.
This failed model is being replicated through the Bank of Baroda -Vijaya-Dena Bank merger, he said. Thus, two more banks are becoming extinct. Earlier, seven associate banks were murdered in the name of mergers.
“What is the gain, if any, to the country, the people, the economy, customers, or even the balance sheet? Nothing but overall loss," Venkatachalam said.
"Other casualties are service, branches, jobs, culture and ethos, work satisfaction, and financials. The AIBEA has been consistently opposing mergers in the neoliberal policy environment.”
KS Krishna, Joint Secretary, AIBEA, and Organising Chairman of the conference, said in his address that recent reports expose claims that India is being universally recognised as a bright spot in the global economy.
'No bright spot'
This is in turn being substantiated by none other than various government/non-government agencies and institutions through reports on increasing inequality; concentration of wealth on a few individuals; worrying position on the hunger index, human capital index, human capital score, gender gap index; unabated price rise and loss of purchasing power; job losses consequent to demonetisation; rising unemployment; widening current account deficit, and slow export growth, Krishna said.
Viewed in this backdrop, the Centre's Interim Budget is an exercise in deception since it is without an Economic Survey and reports analysing data and outcomes on various fronts, which are integral to the Budget document.
Though classified as 'Interim,' the Budget has been stretched beyond reasonable limits, going so far as to articulate a 10-point vision for the decade ahead, which is totally out of place with its 'Interim' nature.
He said the Centre's flagship programmes, Jan Dhan Yojana, insurance schemes and Mudra loans could be implemented only because of the privileged status and ownership of public sector banks, and control and direction vested in the government.
'Undesirable trend'
"The track-record of privately-owned banks shows nothing much to boast about with respect to corporate governance, regulatory compliance, and service delivery."
Post-nationalisation in 1969 saw the collapse of nearly three dozen private Banks. The country also witnessed recently unravelling of undesirable recent episodes involving high officials of new-generation banks.
However, in the name of neo-liberal policies, the relevance of state ownership, control, governance and directions over banks are being questioned continuously, Krishna said.
Binoy Viswom, MP (CPI) said in his keynote address that public sector banks in India play a dominant role in socio-economic development.
Credit deployment in agriculture, industry and services sectors have contributed to growth, he said. "We shall ensure that voice of bank employees is heard in Parliament."
Among those who were present included were Stephen Jayachandra, President, CBEU; PV Bharati, MD and CEO, Corporation Bank; AN Suresh, President, All India Bank Officers Association and and Corporation Bank Officers Association (CBOA); Devadas Menon, General secretary, CBOA; Aniyan Mathew, President, All Kerala Bank Employees Federation (AKBEF): and CD Josson, General Secretary, AKBEF.
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