Tag Archives: PSU Banks

Don’t Merge Public Sector Banks – CPI(M)

15 Tuesday Jan 2019

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New Delhi, January 15: The Polit Bureau of Communist Party of India (Marxist) has issued the following statement:

The Polit Bureau is deeply concerned at the un-seemly haste with which the government of India has been going ahead with the merger/amalgamation process of three nationalized banks viz., Vijaya Bank, Bank of Baroda and Dena Bank ignoring the collective opposition of the employees and officers together of the entire industry.

The merger of banks is being justified by the Government on ground of strengthening and consolidating the concerned banks; but in reality, such a merger will further weaken all the three banks post merger. Problems of public sector banks emanate from the deliberate default in loan-repayment by the big corporate houses. The solution lies in stern action by the Government for outright recovery of the huge loan amounts from these defaulter corporates with penalty instead of the futile exercise on merger.

However, the Government has been displaying a totally indulgent attitude to the defaulter corporates and through the Insolvency and Bankruptcy Code (IBC) procedure public sector banks are being forced to accept big reduction of the defaulted loan amount.

Such merger of banks, instead of addressing their basic problems, will actually result in squeezing the banks’ operational areas through inevitable closure of several branches seriously affecting employment. It also affects the spread and availability of banking services for common people particularly in comparatively remote areas.

The CPI(M) opposes the harmful exercise of merger of banks and calls upon the government to desist from such moves.

In the name of reforms, PSU Banks are being strangulated

30 Thursday Mar 2017

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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:

  1. 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?
  2. 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.
  3. 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.

Act Strongly to recover NPA – Arun Jaitely, Finance Minister to PSU Banks

22 Saturday Oct 2016

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Arun Jaitely, Finance Minister, has asked the PSU Banks to take strong action to recover the NPA (bad loans) from the defaulters with out fear. Such an assurance should have been given long ago. The lakhs of crores of rupees of NPA has been accumulated year after year due to the compromising position taken by the Bank Management, Government and interested and influential politicians. The hard earned money of the common people put in the banks are ‘gifted’ to the corporates, rich and influential people through liberal loans without even sufficient and adequate security.

The government and the Banks should not only declare their intentions, but should act firmly. Is it possible when it is from these same corporates and rich that lakhs of crores of rupees are collected as donations for elections etc.? There should be very strong pressure from the people on the government to get it implemented.

It is also necessary that  High level Judicial Enquiry is conducted in the matter of NPAs and the culprits punished.

Rs. 5.4 lakh crore NPA (Bad loan) of PSU Banks!

16 Tuesday Aug 2016

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The PSU Banks in the country are having  NPA or the bad loans not returned of Rs. 5,39,995 crore as in 2016. For the last 15 years, the NPAs have been increasing every year. These are loans of crores of rupees given to big corporates, business barons and so on. Neither the government nor the PSU Banks are taking any serious action to recover these loans. These are companies who are having sufficient funds to repay. This is a conspiracy between the management of the banks, corporates and ruling political parties.

There is a need to expose all of them. The Banks should publish the list of these corporates. They should be shamed. Government should take serious action against all those involved. It is the people’s savings that have been swindled.

Top 10 Corporates alone owe Rs. 5.73 crore to PSU Banks.

03 Wednesday Aug 2016

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Minister of State of Finance, Santosh Kumar Gangwar told the Rajya Sabha yesterday that the top corporate groups in India owe the Public Sector Banks Rs. 5,73,682 crore, the loans taken and not returned. The total NPAs or bad loans by the corporates will come to lakhs of crores of rupees.

This is a clear case of politician-corporates-bank management conspiracy taking away the savings of the people of the country for the benefit of the corporates. Very strong action is required to recover this money.

PSU Banks loss about Rs.18,000 crore.

07 Tuesday Jun 2016

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According to the Finance Minister Arun Jaitely, the total loss to the PSU Banks is about Rs. 18,000 crores. The loss is mostly due to the NPA or bad loans of hundreds of crores of rupees given to the corporates, including almost all the important business concerns in the country. These loans are given without proper procedure, on the recommendations of the political bigwigs and also in collaboration with the top officers of the banks. The indications are that these loans are taken with the full confidence that the borrowers can escape without repaying the loan.It is very much necessary that a high level inquiry should be ordered and remedial measures taken to recover these loans. But since the top politicians, big corporates and top Bank Officers are involved, the chance for any sincere inquiry is doubtful.
The silver lining is that despite these NPAs, the PSU Banks are having an operational profit of Rs. 1.40 lakh crores.

Government on the move to merge Subsidiary Banks with SBI

03 Tuesday May 2016

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In the name of consolidation, the government is on  the move to merge its subsidiary banks with  SBI. There are five associate banks of SBI like State Bank of Patial, State bank of Hyderabad, State Bank of Travancore etc. The proposal is to merge them with the SBI.

Merger of one or two PSU Banks in to one is also in the agenda of the government. This can only be seen to weaken the Banks and reduce its functioning. The licence given to many private payment banks has also to be seen in this context.

The great role played by the Public Sector Bank is well known. These decisions are only to help the private banks grow at the expense of PSU Banks. It s certain that the powerful bank unions will not be a silent spectator on these issues and will start powerful agitations.

Private Airlines owe Rs.220.16 crore to AAI

10 Thursday Mar 2016

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The private airlines including Indigo and Jet owe Rs. 220.16 crore to the Airport Authority of India (AAI) who owns  and runs most of the Airports in the country. This was informed in the Lok Sabha today, 10th March 2016, by Civil Aviation Minister Mahesh Sharma.

This once again shows that the private companies and corporates are draining the revenues of the PSUs in many ways. The case of Mallya, the liquor baron and owner of King Fischer Airlines is well known to all. He took more than Rs.9,000 crore from the banks and have now slipped away to UK to avoid arrest and recovery of the loan.

The fact is that the government is also not taking stringent action against these corporate honchos. Otherwise how could Mallya escape to UK when look out notice is there against him?

And PSUs are criticised for bad loans, loss etc. All these should be exposed to the public.

PSU Banks write-off Rs.1.14 lakhs NPA

09 Tuesday Feb 2016

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The public sector banks in India have written off loans of more than Rs.1.14 lakh crores during 2013-15 alone as per an RTI reply received from the Reserve  Bank of India. Out of this, more than Rs. 40,000 crore is from SBI alone. 29 Banks have written off such NPAs. The RBI refused to provide even the details of the loans taken of more than Rs. 100 crores.

The non-repaid loans which are called Non-Performing Assets(NPA) have been increasing. These are mainly loans of large amounts coming to hundreds of crores of rupees mostly given to big corporates and business concerns. While the small amount loans of a few lakhs or so are recovered through coercive measures from the common people, the big sharks are let off. The government also keeps silence. The common men’s savings are gifted to the corporates. The PSUs are let to bleed. This injustice has to be put an end to.

 

NPA of Public Sector Banks increased to Rs. 2.6lakhs

23 Monday Nov 2015

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It is almost incredible. The 19 Public Sector Banks in the country are having Non-Performing Assets (NPA) of Rs. 2.6 lakhs as in September 2015. NPA means bad loans which are not repaid so far. The NPA in March 2015 was Rs. 2.3 lakhs.

These bad loans are mainly given to corporates and big business. The name of almost every big corporate house and big business concern are in the list of defaulters. They are given hundreds of crores of rupees as loan and they are not repaid. While, the banks take strong action to recover amount from the common man who takes loan, no such action is taken against  the big fish.

On the one side the banks are crying about NPA, but again more and more such loans are given, resulting in the increase of the NPA.