Shillong, Dec 16: The employees of public sector banks (PSBs) including employees of the State Bank of India (SBI) in Shillong went on a two-day strike starting on Thursday in the city agitating against the Central Government’s move to bring in the Banking Laws Amendments Bill 2021 in order to privatize two public sector banks impacting normal banking operation across the country.
However, the private sector, especially new-generation private-sector lenders, like HDFC Bank, ICICI Bank and Meghalaya Rural Bank, worked as usual.
The United Forum of Bank Unions (UFBU), which is an umbrella body of 9 bank unions — (AIBEA-AIBOC-NCBE – AIBOA – BEFI – INBEF – INBOC-NOBW-NOBO) has called a two-day bank strike in protest the central government’s decision to table the Banking Law Amendments Bill 2021.
Manoj Chakraborty, Joint Convener of UFBU, on speaking to reporters said that they are all aware that PSBS acts as catalysts in the economic development of our nation in general and particularly for the underprivileged sections of the society and backward regions of the country. Nationalised banks have played a major role in the development of agriculture, small trade, small business, SSI, transport and in upliftment of weaker sections of the society.
“In the process, common people were brought under the ambits of the banking and thereby development. Way back in 2008 when the world economy was plunged into a deep financial crisis and meltdown, it was PSBS, which helped Indian economy to sustain..there is an argument that Public Sector Banks are not doing well and hence to ensure better efficiency, these Banks have to be privatised. We all know the efficiency of Private Banks, many of which have falled and closed down in the past due to mis-management. On the other hand, all the Public Sector Banks are doing well and earning substantial profit,” said Chakraborty.
The only issue being confronted with the PSBs was that of huge Non Performing Assets (NPAS) in which the major share was that of big corporates. Successive governments have taken initiatives such as Debt Recovery Tribunals, SARFAESI Act. IBC, etc, but they have not yielded the desired results and, therefore, ultimately banks were forced to write off those loans resulting into huge losses, added Chakraborty.
“Even under the Insolvency and Bankruptcy Code, while bad loans have been resolved and Banks could get back some portion of the loan, it has been with huge haircuts for the Banks,” futher added Chakraborty.
The government has decided to introduce the Banking Laws (Amendment) Bill, 2021 during the ongoing Winter Session of the Parliament. The bill aims to privatise public sector banks.
