Kerala - Kochi   

Banking reforms should benefit people: Isaac

KOCHI: Finance Minister T. M. Thomas Isaac said on Sunday that the State government has proved the efficacy of the public sector through various measures.

In contrast to the policies of the Union government, which had adopted a development strategy dependent on foreign capital, the State was encouraging public enterprises, without violating any of the norms envisaged in the Federal structure.

Inaugurating the all-India conference of Corporation Bank Officers' Organisation here on Sunday, Mr. Isaac said that 35 public sector enterprises in the State had made a loss of Rs.94 crore in 2006. Within four years, all units, except five, had turned around, making a profit of over Rs.220 crore. The State is planning to launch eight new units in the public sector, he said. Banks were nationalised to fulfil the objective of serving a social cause. The urban-centric lending pattern had changed, with an increased flow of credit to agriculture and other deserving segments. The social objective is conveniently being forgotten by the Union government by advocating international capital adequacy norms for public sector banks. Profit shouldn't be the sole motive of banks, which are intended to mobilise funds for deployment in nation-building activities.

Pointing out that the world is dominated by financial capital which perpetrates manipulation and speculation, he said the Union government's move to reduce its holding in public sector banks would have serious consequences for the banking sector.

It should be remembered that the recessionary phase of world economy had its origin in the western deregulated financial sector, he said.

The privatisation move would defeat the national objective. The anti-privatisation sentiment had been gaining momentum and the forthcoming national strike on September 7 would reflect the mood of the people. Various organisations including the Congress-led INTUC would participate in the agitation.

Asit Pal, Executive Director of Corporation Bank, said almost all countries were hit by recession and the public sector enterprises had demonstrated their resilience during the recessionary period.

An expanding domestic market and fresh recruitment were positive signs in the banking sector. Good corporate governance would mean good business, he said.

G.D.Nadaf, General Secretary, All India Bank Officers' Confederation, Kaushik Ghosh, General Secretary, CBOO, T.R.Bhat, former chairman, CBOO, V.K.Prasad, Secretary, All India Bank Officers' Confederation Kerala State unit, were among those who addressed the gathering .

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