Thursday, August 10, 2017

Public meeting “What threatens Public Sector Banks in India?” on 10th August 2017 3:00 pm.

Public meeting “What threatens Public Sector Banks in India?” at NDMC Convention Centre (Sansad Marg) on 10th August 2017, 3:00 pm. 

Attempts to privatise the public sector banks has been ongoing since the economic reforms, but due to stiff resistance from the banking sector and certain political parties successive governments failed to succeed. The current crisis in the banking sector is been used as an opportunity to overhaul the banking system.

The combination of merging small banks to create a few ‘lending giants’ along with the introduction of payment banks is a perfect way to end brick and mortar branches. The proposals of ‘haircuts’(a fancy term for write offs,) the policy of demonetisation, ever greening of loans, selling bad loans at pittance to asset reconstruction companies are all measures that would further weaken the public sector banks.

A slew of legislations on banking sector, in the form of, the Insolvency and Bankruptcy Code (IBC), 2016, theBanking Regulation (Amendment) Ordinance, 2017 and the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 introduced in haste and without a debate is another way of making the PSBs weak and subservient. Particularly the FRDI puts most of the PSBs under the threat of being liquidated.

With years of propaganda of an in efficient public sector, a climate of disinvestment is only perfect to liquidate any public sector financial institution! Hence what we are facing today is not just an NPA crisis is a conscious effort to reverse the nationalisation of banks and to end public sector.

Banks apart, entire public sector is facing disinvestments, privatisation, and selling of assets and resources in the name of cutting losses. It is important for all progressive sections of the society, cutting across political affiliations to come together in building a rock-solid resistance.


Sincerely,

Parveen Chabra, United Forum of Bank Union, Convenor, Delhi state
(AIBOC – NCBE – AIBEA – AIBOA – BEFI – INBEC – INBOC- NOBW – NOBO)
Gautam Mody, General Secretary, New Trade Union Initiative (NTUI)
Madhuresh Kumar, National Convenor, National Alliance of People’s Movements (NAPM)