The Hindu : Kerala / Thiruvananthapuram News : Unions’ call to protect public sector banks

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Kerala - Thiruvananthapuram

Unions’ call to protect public sector banks

Special Correspondent

To join strike on September 24, 25

THIRUVANANTHAPURAM: The National Confederation of Bank Employees (Kerala) has warned the government against indiscriminate privatisation of public sector banks and raising the foreign direct investment (FDI) cap in the banking sector.

In a joint statement here, NCBE (Kerala) general secretary K. Rajakurup and State Banks Staff Union (Kerala) general secretary John Joseph said the efforts of the government to implement the Raghuram Rajan Committee recommendations and the recent statement of the Indian Bank Association (IBA) that government equity in public sector banks could be reduced to less than 51% were clear pointers to the moves for privatisation of public sector banks.

The plan to amend the Banking Regulation Act to allow more FDI in the banking sector by removing the 10 per cent cap was also a retrograde step in the same direction, they said.

The bank union leaders termed unfortunate the talk of the government and the bankers about privatisation and global competition at a time when the public sector banks should be expanding their activities to achieve total financial inclusion and to cater to the needs of the priority sectors of the economy. Such talk would only lead to dilution of the social obligations of the banking industry, especially of the public sector banks, they contended.

They called upon all sections of people to support the two-day nation-wide strike called by the United Forum of Bank Unions on September 24 and 25 to register the strong opposition of bank officers and employees to privatisation and merger of public sector banks and higher FDI in the banking sector.

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