BANK license nothing but to provide licence to corporate and big houses to loot people’s money- Rajen Nagar

Ludhiana, July 21, 2013: Punjab Bank Employees Federation, on Sunday, organised a seminar on completion of 44 years of Bank Nationalisation.

Rajen Nagar, President, All India Bank Employees Association, Dr.  Arun Kumar, Professor, Jawahar Lal Nehru University, New Delhi, NK Gaur, General Secretary, Punjab Bank Employees Federation (PBEF), PR Mehta, President, PBEF and SK Gautam, Secretary, PBEF addressed the bank employees.

More than 500 bank employees attended the seminar.

In his address, Rajen Nagar while congratulating the bank employees on the completion of 44 years of the nationalisation of major private banks on July 19 said that it will remain a historic watershed decision in the post-independent politico-economic events across the country, the progress made by nationalised banks in the last four and half decades is equally unmatched and unparalleled. Many segments of the economy, which remained backward and neglected could become priority sectors. Bank credit was able to flow to important sectors such as agriculture, employment generation, poverty alleviation, rural development, women empowerment, women empowerment, health and education and infrastructure. Banks could access and mobilise the hard earned savings of the people and utilise the same for credit deployment to needy sector. Branch expansion after nationalisation is a record in the entire world. Doors of the banks which were hitherto closed for the common people were opened up for them. Class banking could become mass banking to a great extent.

Further, he said in the last two decades, the policy of the government has changed. The attempt is to reverse the clock back. The idea is to hand over the banks to the private hands, he said, adding all these retrograde measures are sought to be carried out in the name and plea of banking sector reforms. All the gains of nationaised banking are sought to be short-circuited.  Public sector banking is denigrated and private sector banks are being glorified.

Further, he said deficiencies of the public sector banks are being highlighted but the gross failures of the private sector banks are being camouflaged. He added social banking is decried and profit making is being made the sole objective.

He regretted that government’s ownership in banks is being diluted and private sector’s influence is being increased. Public sector banks are sought to be consolidated, merged and shrunk whereas private sector banks are allowed to be expanded., he said.

He said shamelessly, the corporate and business houses are sought to be given licenses to start their own banks. The corporate sector is responsible for about 56 per cent of bad loans in banking sector. The share of top 30 accounts in gross non-performing assets for all the Public Sector Banks stood to 39.7 per cent as at the end of March 2013.

Nagar revealed that the Foreign Banks, who lend mostly to corporate houses, the top 30 non-performing loans accounts are responsible for 84 per cent of gross NPAs as on March 2013. He remarked that corporate “loot” of people’s money is quite evident.

How can they rely on corporate and big houses to open bank and provide security to customer’s security, he questioned. He further remarked that bank license is nothing but to provide licence to corporate and big houses to loot people’s money.

Nagar said they have seen the role of private sector banks not only in India but also in developed countries such as USA and of Euro Zone and in Japan and East Asian countries. He said the government is talking about the merger of public sector banks to reduce their numbers and advocating more banks in private sector, adding this in itself a self contradictory stand. He added rural banking is attempted to be outsources and permanent jobs in the banks are being contracted out.  He opined that financial inclusion is the requirement of the day but by diluting the role of social banking, financial exclusion is being  aggravated. In short, it is reversal of the objectives and goals of bank  nationalisation, he believed.

Further, Nagar said wage settlement of bank employees is due from November 1, 2012. IBA is not reflecting the positive attitude. He added IBA attitude towards wage negotiation has been generating discontent amongst the bank employees. If early settlement is avoided, bank employees will have to go in streets demanding early wage settlement through struggle and strikes.  

He revealed that Central Committee of AIBEA is going to meet in Allahabad on July 29 and 30 to take stock of the situation and to decide future course of action.