The Hindu : Karnataka News : Stir in March to oppose restructuring of nationalised banks

Online edition of India's National Newspaper
Monday, Jan 24, 2005

Karnataka

Karnataka

Stir in March to oppose restructuring of nationalised banks

By Our Special Correspondent

SHIMOGA, JAN. 23. The president of the State Bank Of India Officers' Association's State unit, and secretary of the All-India State Bank Officers' Federation, G.D. Nadaf, said here on Sunday that officers and employees of nationalised banks will go on a one-day nation-wide strike in March to oppose the move by the Government to effect structural changes in 27 nationalised banks.

Inaugurating a one-day conference of members of the Hassan zone of the State Bank Officers' Association comprising Hassan, Shimoga and Chikmagalur districts, he appealed to people to pressure the Government not to go ahead with its reported move either to merge, restructure or close down nationalised banks as it will prove detrimental to the national interest.

Explaining the consequences that might follow if the nationalised banks are restructured, Mr. Nadaf said the Government seems to be of the opinion that the nationalised banks are under loss. All nationalised banks are making profit, he added. He made out a case for nationalising more private banks.

Funding

Mr. Nadaf pointed out that as most of the programmes announced in the Common Minimum Programme of the United Progressive Alliance Government are being financed by nationalised banks, there is, in fact, a greater need to strengthen them.

He noted that the Union Finance Minister, P. Chidambaram, has made it mandatory for banks to increase their agricultural lending. "How can the nationalised banks be expected to reach the target unless their manpower is increased proportionately?"

He criticised the Government's move to push the nationalised banks to compete with private banks by not providing them a level-playing field.

He urged the Government to strengthen the nationalised banks to implement more people's welfare programmes.

Noting that the main purpose behind nationalising private banks was to quicken the pace of rural development, Mr. Nadaf said if the implementation of this objective was found wanting the Government alone was responsible for it.

Mr. Nadaf said it is disturbing that successive governments have not dared to question the policies of the World Bank and the International Monetary Fund. It is unfortunate that the nationalised banks are being made responsible for the adverse results of wrong decisions taken by the Government.

`No appreciation'

He regretted that there is no appreciation by the Government even when the nationalised banks surpass targets.

Emphasising the need to make the directors of the nationalised banks accountable to the public, he alleged that the balance sheets of many the nationalised banks are not transparent. He demanded that transactions made by the nationalised banks be made public as arrears running into crores of rupees had been written off.

The general secretary of the State Bank of India Officers' Association, State unit, G. Muthuswamy, presided over the function.

Earlier, the chairman of the Reception Committee, R.N. Hegde, welcomed the gathering.

B.S. Ravindra, S.M. Chalawadi and Jalawadi, office-bearers of the association, were present.

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