Day-2 of nationwide bank strike against proposed privatization of public sector banks

Ludhiana: On the call given by United Forum of Bank Unions (UFBU) a massive rally on 2nd consecutive day was organized by UFBU Ludhiana in front of State Bank of India Fountain Chowk, Ludhiana. Various leaders of UFBU, Com. P.R. Mehta, President Punjab Bank Employees’ Federation (PBEF), Com. Naresh Gaur, Convenor UFBU, Com. Kamaldeep Singh Sangha General Secretary Punjab Agricultural University Teachers Association (PAUTA), Com. B.S.Walia President PAU Employees’ Union, Com. Pawan Thakur (AIBEA) Com. Ashok Arora, Com. G S Mangat, Com. J P Kalra from AIBOC, Com. Iqbal Singh Malhi and Com. K.K.Khullar from NCBE, Com. Gurmeet Singh and Com. Chiranjeev Joshi from AIBOA addressed the rally on this occasion.

While addressing the rally Com Mehta said, that in the garb of efficiency, and mis-conceived policy to shrug of the responsibility, Government has embarked upon privatization of Public Sector Banks.

He said, it is irrefutable that “privatization” neither brings efficiency nor the safety. Around the world innumerable private banks have failed. It is a myth to believe that only “privates” are efficient. If private enterprises are epitome of efficiency, there should not have been any NPAs from large private corporate entities at all. The NPAs/stressed assets of the banking industry belong to private large corporate which incontrovertibly, unquestionably demonstrates that private enterprises do not denote efficiency.
Public Sector Banks are nation builders. They have humungous value of assets, and lakhs of crores of funds with them. It would be irrational and, rather, mischievous and an ulterior motive to place the huge network of bank branches, infrastructure and assets of Public Sector Banks in the hands of private enterprises/business houses or corporates.

This would incontrovertibly result in denial of easy, next door and safe banking to the populace of the country. This would also result in denial of convenient, economical banking services to the common man.

This is regressive inasmuch as it turns the clock back to class banking from mass banking. This would also pave the way for monopoly and cartelization.

This is a retrograde measure for a developing country like ours where banking network needs to be spread further, with a sense of social responsibility also, which would be highly lacking if banks are privatized.

Photograph by: PS Dhamija

Public Sector Banks are the life line of the country. They should remain so. We strongly oppose any move to privatize public sector Banks. The public sector banks belong to the billions and billions of citizenry and we oppose any action to hand them over to the billionaires.

Retrograde Banking Reforms – WE OPPOSE 
We have been opposing misplaced, retrograde banking reforms that were introduced in the year 1991 for the reason that these measures are aimed at privatization of public sector banks, than enabling them to be stronger.

The intent has now been clearly exhibited by the demonstrated actions of the government through its discrimination in capitalization, dilution of stake in PSBs, irrational policies encouraging to Private Sector Banks, attempts of privatization, allowing licenses of Small Banks and Payments to private corporate, blaming the Public Sector Banks alone for the alarming position of NPAs, showing them in poor light.

Instead of tightening the laws to recover the large NPAs, laws like Insolvency and Bankruptcy Codes have been promulgated forcing hair-cuts upon PSBs in the garb of “NPA Resolution”.

Despite opposition from the trade unions, stakeholders in the banking industry, the Government is unrelenting and continuing the misplaced reforms at neck-breaking speed.

Com. Gaur said, as important stakeholder in Banking Sector, we owe a pious duty to the citizenry of the country to guard the Public Sector character of Banks in order to ensure safe, economic and easy access of banking facilities, sans exploitation, to the common man of the country and not to place the humungous assets, network of bank branches and lakhs of crores rupees in the hands of private corporate/businessmen and the business houses. Hence, we oppose any ill-conceived reforms in banking space.

We have been demanding stringent measures to recover the large corporate stressed assets which are the cause of concern to the Banks, including strong recovery laws and taking criminal action against willful defaulters. Government has not exhibited its firm willingness to implement these possible, plausible and implementable measures.

On the other hand, Government is seriously continuing the retrograde reform measures ignoring the real menace in the banking industry i.e. mounting bad loans and the growing list of Willful defaulters. Willful default by large corporate borrowers, imposed hair-cuts through ill-conceived Insolvency and Bankruptcy Code, has resulted in heap of write offs, making dent on the balance sheet of Public Sector Banks. This has not only affected the profitability of the banks, but has become an alibi to allege inefficiency. The hard work of dedicated bank personnel has been constrained to go in vain.

There is an urgent, decisive and imperative need to bring in suitable statutory framework to consider willful default of bank loans as “Criminal Offence” as this can alone deter such willful default, consequential NPAs and strengthen Public Sector Banks to enable the country to achieve overall development. Equally, there is also urgent need for framework to examine the accountability of Board level/top executives. These will deter NPAs in the Banks.

It has, therefore, become inevitable for the United Forum of Bank Unions to convey our protest and draw the attention of the Government and Bank managements through agitational programmes and strike action to convey our protests and the Government.