The Hindu : Tamil Nadu / Chennai News : We will intensify agitation, warns bank unions forum

Online edition of India's National Newspaper
Wednesday, Mar 23, 2005

Tamil Nadu

Tamil Nadu - Chennai

We will intensify agitation, warns bank unions forum

By Our Special Correspondent

Bank employees staging a demonstration in front of the Indian Bank head office in Chennai on Tuesday. — Photo: K. V. Srinivasan

CHENNAI, MARCH 22. Bank employees today struck work protesting the Government's proposal to merge public sector banks and allow 74 per cent foreign direct investment (FDI) in private banks.

The United Forum of Bank Unions (UFBU) warned that if the Government did not reverse the decisions, the union would intensify the agitation.

Responding to the call given by UFBU, members of the nine constituent unions went on strike.

The entire banking sector came to a standstill, said C.H. Venkatachalam, convener, UFBU, Tamil Nadu. As India was a developing economy, public sector banks had to be more domestic development-oriented, he said. But the Government wanted to merge public sector banks and make them international banks. India's share in global trade was less than one per cent and hence there was no real need to do international business, he said.

`Risk of takeover'

Mr. Venkatachalam said if 74 per cent FDI was allowed in private banks with equal voting rights, the banks would be taken over by foreign investors. "Today's strike is a token protest. We hope the Government will understand our resentment and reverse its decisions. Otherwise, the UFBU will intensify the agitation," he said.

Employees from the Tamil Nadu State Apex Cooperative Bank, district central cooperative banks, urban cooperative banks, state agriculture and rural development bank, primary agricultural and rural development banks and primary agricultural cooperative banks participated in the strike, said P. Balakrishnan, general secretary, Tamil Nadu Cooperative Bank Employees Association.

A demonstration was held in front of the Indian Bank Head Office on Rajaji Salai. Employees affiliated to the Cooperative Bank Employees Federation observed a fast near the State Guest House, Chepauk, said T. Tamilarasu, general secretary.

More than 500 employees of State Bank of India in Chennai did not take part in the strike, said Naina Masilamani, deputy general secretary, SBI Ambedkar Trade Union.

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