The Modi government has now focussed its attack on the public sector banks, in order to allow a free hand for the private sector. Just look into the following:
- 5 Affiliated Banks viz. State Bank of Travancore, State Bank of Mysore, State Bank of HYderabad, State Bank of Patiala and State Bank of as also Mahila Bank are going to be merged with State Bank of India w.e.f. 1st April 2017. SBT, which is headquartered in Kerala has been in existence for 72 years and has got 1,177 Branches all over India, 1767 ATMs, 14,892 employees and a deposit as Rs. 1,60,473 crores, It has got a capital of Rs. 36,123 crore and a profit of about Rs. 400 crore annually. It has got a large customer base. This is the case with the other SBI affiliated Banks. After merger, thousands of branches are going to be closed and about 10,000 workers may became surplus and no new appointment will be made in the vacancies through retirement. VRS/CRS also may be implemented. Thousands of jobs are going to be lost. What is the necessity of merger except to reduce the workforce and close the branches to favour the private sector banks to expand their services and garner profit?
- The Central government has directed 10 PSU Banks including IDBI Bank, Central Bank of India, Indian Overseas Bank and United Bank to close down loss making branches and selling their shares in the market. This will not only reduce the area of operation of these banks, but also will favour the private banks to increase their area of service.
- Instead of taking serious action to recover the Non-Performing Assets (NPA – unpaid loans) of lakhs of crores of rupees from the corporates, the government is closing its eyes and allowing the borrowers to escape with out payment. Case of Vijay Mallya is only one of such thousands of cases.
These anti – PSU Banks policy and decisions of the government need to be strongly opposed and defeated.