PRESS RELEASE 14-5-2014 BY C.H. VENKATACHALAM,
GENERAL SECRETARY, ALL INDIA BANK EMPLOYEES ASSOCIATION
AIBEA CONDEMNS NAYAK COMMITTEE REPORT ON BANK PRIVATISATION – DEMANDS
REJECTION OF REPORT
Our
attention has been drawn to the report submitted by P J Nayak Committee
recommending privatization of public sector banks by reducing the Government’s equity
capital in the banks to less than 51%. Ever
since the major Banks in our country
were nationalized in 1969, banking has been transformed from class banking to mass
banking our country. From mere 8239
branches in 1969, today there are more than 80,000 bank branches and nearly
36,000 of the branches being located in rural and semi-urban locations. From mere Rs. 5000 crores of Deposits in
1969, today Banks have collected more than Rs. 78 lac crores from the people as
Deposits. Total advances of Rs. 3500
crores in 1969 has gone upto Rs. 50 lacs crores. Banking services are today accessible to
common people only because the banks are in public sector. Sectors and areas like agriculture, rural
development, employment generation, women empowerment, poverty alleviation,
infrastructure development, etc. are given loan only because the Banks are in
public Sector. Many private sector banks
in our country have collapsed in the past due to mismanagement and cheating the
people. Hence public sector banks should
not be privatized. Rather they should be
further strengthened and expanded. Given
the bad track record of the private banks in our country, AIBEA also demands
that all private Banks should be nationalized and brought under public sector
banking.
It is a sad
commentary on the wisdom of this Committee that it has recommended banks to be
handed over to private hands at a time when the bulk of the bad loans are
attributable to the very same private sector.
More than 4 lac crores of bad loans are due from these big private
corporate and business enterprises. We strongly condemn the retrograde
recommendations of the Nayak Committee and demand its outright rejection.
AIBEA will
be organizing countrywide demonstrations, rallies and other protest programmes
demanding the rejection of the report. We
shall also give a call for strike if the report is not rejected. Banks deal with people’s money. People’s money should be available for
people’s welfare and not for private loot through private control.
C.H.VENKATACHALAM
GENERAL
SECRETARY