Money & Banking

Employees’ union voice concerns against privatising BoM

Our Bureau Mumbai | Updated on February 16, 2021

File photo   -  THE HINDU

Bank of Maharashtra’s (BoM) employees’ union wants the government to maintain the public sector character of the bank in the backdrop of the problems that two private sector banks – YES Bank and Lakshmi Vilas Bank – and a host of urban co-operative banks (UCBs) faced in the recent past.

“Customers are scared of private sector banks, more particularly after the YES Bank episode. In Maharashtra, Punjab and Maharashtra Co-operative Bank customers have suffered a lot.

“The Reserve Bank of India (RBI) has cancelled the licence of Subhadra Local Area Bank (Kolhapur) from private sector and Shivam Sahakari Bank (Ichalkaranji, Kolhapur) and The Karad Janata Sahakari Bank (Karad) from UCB sector,” said Devidas Tuljapurkar, General Secretary, All India Bank of Maharashtra Employees Federation (AIBoMEF), in a statement.

He emphasised that the RBI and government should have initiated steps to repose stakeholders’ confidence in the banking system.

Referring to the government’s announcement that it will privatise two public sector banks in FY22, Tuljapurkar said this announcement has triggered speculation in the market and created confusion in the minds of customers.

According to reports, the government could weigh privatisation of Indian Overseas Bank (IOB), Bank of Maharashtra (BoM), Bank of India (BoI) and Central Bank of India (CBoI). It may zero-in on two of these four banks for privatisation.

“Bank of Maharashtra is identified with the common man and is showing extraordinary performance. Financials of the bank are strong.

“The unions in the bank are proactive and will continue their efforts in pursuing the government to maintain its public sector character,” said Tuljapurkar.

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Published on February 16, 2021
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