 "Unions object Ministry's decision to appoint pvt sector executives as head of public sector banks")
On Friday, the Ministry of Finance has announced a set of decisions relating to the banking sector, particularly the public sector banks.
C H Venkatachalam , general secretary, All India Bank Employees Association (AIBEA) said, "Appointing private sector executives to head PSBs is not a good decision. This is a definite step towards diluting the public sector character of our banks."
"PSBs are huge financial institutions dealing with massive and precious public savings. Total deposits of public sectors today are more than Rs 66 lakh crore. PSBs have clear objectives to serve the basic needs of our developing economy," he added
He said taht these lenders are not merely profit making machines but they have a broad social orientation.
"While there cannot be two opinions that our PSBss have to be more efficient and vibrant, appointment of private sector executives to head our PSBs will not serve the purpose," said Venkatachalam,.
He opined that the latest developments would mean that the social orientation of PSBs will be undermined as their total outlook would be only on maximising profit. "The dedicated in-house senior officers of the PSBs will be deprived of their entitled career opportunities and would be totally frustrated," alleged Venkatachalam.
On capitalisation
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"Government should come forward to capitalise all the PSBs without any discrimination or exception. Otherwise it will amount to pressuring these Banks to desperately go for private capital and ultimately get privatised," he said.
"From AIBEA we have been demanding criminal action on willful defaulters but no decision has been announced by the Government in this regard which is very disappointing," added Venkatachalam.
As on March 31, 2015 there are 7,035 cases of will defaulters involving bad loans of Rs 58,792 crore.
The bad loans in the banks has risen to Rs 2,97,000 crore excluding another Rs 4,03,004 crores of bad loans of 530 corporate companies shown as rescheduled and restructured loans under CDR scheme.
"Bad loans stuck in top 30 borrowal accounts of PSBs as on 31-3-2015 is Rs. 1,21,162 crores. All these are private corporate companies who had defaulted and it is an irony that the Government is trying to make the executives of the private sector to head the glorious public sector banks. It is nothing but an attempt to build a private sector superstructure with the help of the public sector infrastructure," he said.
"AIBEA will be shortly organising protest programmes throughout the country against these decisions of the Government," said Venkatachalam.