Rs80 lakh crore public money at risk if PSBs privatised: UFBU
Strongly opposing Prime Minister Narendra Modi's plans to privatise all public sector banks (PSBs), the Unted Forum of Banking Unions on Thursday said that it could imperil Rs 80 lakh crore hard-earned money belonging to the people.
 
UFBU Convenor Devidas Tuljapurkar said that the move could prove counterproductive as the private sector banks will work towards "accounting profits" vis-a-vis the PSBs which strive towards "social profits".
 
To protest the move to privatise the PSBs, the UFBU will go on a two-day nationwide strike on March 15-16, he said.
 
"India is still confronted by poverty, unemployment, hunger, there is acute economic disparity and geographical imbalances There is a need to implement social sector lending schemes in which the private sector banks hardly contribute," Tuljapurkar said.
 
He pointed out that in the implementation of the Jan Dhan Scheme, the share of private sector banks is less than 5 per cent and their share is also insignificant for other schemes like Mudra, Swadhan, Stand UP India, Make In India, etc. which are intended for employment generation.
 
The common man will be pushed out of the orbits of banking and in turn, development which is unaffordable, while putting at risk Rs 80 lakh crore savings of the people, Tuljapurkar warned.
 
Referring to the "dismal track record" of the private sector banking in India, he said whenever they collapse, it is the PSBs which bail them out.
 
When Yes Bank was on the verge of a crash, the government intervened and the State Bank of India bailed it out, and earlier helped another important private sector NBFC, the ILFS, along with the LIC, he noted.
 
In the past, after the Karad Bank collapsed with the unfolding the Harshad Mehta scam, the Bank of India helped prop it up, and later, the Global Trust Bank crashed with the revelations of the Ketan Parekh scam and it was the Oriental Bank of Commerce which helped it out, he added.
 
"Today, the biggest challenge before the Indian banks is non-performing assets in which the share of the corporate sector is over 70 per cent and they are 'day-dreaming' to be the owners of these PSBs now. It is most unfortunate that the PM is facilitating it which may prove to be disastrous for the savings of the masses," Tuljarpurkar said.
 
Moreover, even now several private sector banks are struggling for survival on account of some of the dealings of the dubious private and corporate sectors, he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    rathnamasokkumar

    1 month ago

    Don’t we know what happened in Indian Bank when Mr. Gopalakrishnan was CMD? It is also well known how politicians manipulate/control decision making regarding loans and compromise settlements in PSBs. More PSBs have been put under Prompt Corrective Action than private banks, by RBI. Who bails out the PSBs with frequent equity infusion? Not the Union Leaders and Politicians. But by the Govt thru tax payers money. Major saviour of Yes Bank was SBI but other private players like HDFC, ICICI Bank, Axis, Kotak, Federal and Bandhan also chipped in. Before raising unnecessary alarm, the Union Leaders should introspect to find out what is their contribution to the present sorry state of affairs in PSBs.

    jittupnb

    1 month ago

    Unions are biggest threat to country

    sureshsankar75

    1 month ago

    Only these union guys are under threat..
    These bastards has to be kicked out. They are the sole reason for inefficiencies in public sector

    drprasanna23

    1 month ago

    Wrong propaganda by these antinationalistic idiots whom they themselves proclaim that they know everything.... Look at the way they are weeping and unable to digest the development in our nation under our PM Narendra Modi... Jai Shri Ram.. Jai Jai Shri Ram πŸ™

    joydiipd.soor

    1 month ago

    I am a lot befuddled & flummoxed at the policy making initiatives of our finance ministry.

    On one side they have no clear-cut targets & strategies to reduce #NPAs and on the other,focus only on merging #PSU banks with no clear mandate to provide ease of convenience and help in facilitating banking transactions of the common middle-class consumer!!

    If I have a savings account in a PSU bank which ends up as one of the two subordinate merging banks, my bank's NEFT gets changed as a result of which my interests which accrue from outside sources,gets blocked as a result of the consequent NEFT mismatch!!!!!

    Then there's an absolute mayhem of ad-hocism that's prevailing on private sector banks. Take the case of aggressive retailisation of IDFC First Bank where savings account interest rates are getting tweaked on the drop of a hat!?

    REPLY

    drgmani.apollohospitals

    In Reply to joydiipd.soor 1 month ago

    Joydiipd.soor.....you are panicking. There is nothing to panic. When banks merge they get stronger and non government banks run by politicians are responsible for large NPAs....don't blame the corporates blindly. There is no mayhem. Yes if you were greedy and invested in small banks for better interests you are a fool. That is why the strong BJP government is going to weed out sick small banks control by politicians into just 6 to 8 banks all over India...BJP has to clean the DIRTY mess of Congress government

    S.SuchindranathAiyer

    1 month ago

    Unregulated, and with Banking laws and practices completely corroded by Government (politicians and bureaucrats), RBI and Management, since fifty two years, can anybody who cannot print money run Indian Banks?

    REPLY

    drgmani.apollohospitals

    In Reply to S.SuchindranathAiyer 1 month ago

    Even America the super power is printing money for its banks so stop shouting

    everestvilla.manali

    1 month ago

    PSBs are sick banks due to government policies staff inefficiency indiscipline very strong employees unions UFBU want to save their existence by becoming saviour of poor people and customers otherwise they have nothing to do with public welfare they never discussed lacs of rupees of taxpayers money being infused in PSBs in order to keep them running bank unions leaders don't work they're enjoying life black mailing management now on privatization they are shedding crocodile tears

    REPLY

    drgmani.apollohospitals

    In Reply to everestvilla.manali 1 month ago

    Exactly...all bank unions must be banned first...bank employees have more NPAs than common man....can bank unions explain this first???

    shaharvindbhai1947

    In Reply to everestvilla.manali 1 month ago

    Actually the borrowers who are responsible for creating NPAs in banks are wilful defaulters protected by politicians especially connected to ruling parties. Strong actions are not taken by banking department of central government. Hence the government is forced to make budgetary provisions for reducing NPA and protecting defaulters. Earlier governments were not foolish who continued government control on PSU banks. To cover its failures government is now busy privatizing bank to convert the depositors into beggars.

    drgmani.apollohospitals

    In Reply to shaharvindbhai1947 1 month ago

    For your information more than 80% of NPAs were given as loans by UPA rule government before 2014. Now these loans are not given back and have become NPAs . So blame congress and UPA not BJP and NDA

    pritesh

    1 month ago

    You have to look at the statestics before making any conclusion. What is total loan outstanding and NPA in public sector bank vs loan outstanding and NPA in private sector. What is reason of such high NPA in PSB, definitely governance is an issue and everybody knows that. One yes bank failure can not be equated with prevailing condition in psb

    REPLY

    drgmani.apollohospitals

    In Reply to pritesh 1 month ago

    Government banks employees are crooks

    kushal_shah_1

    In Reply to pritesh 1 month ago

    Private bank never show their true balance sheet. They haven't branch in rural area. You may try with your account by keeping less than 10k in your account, you will get to know, how much charges they levied. Where was the people when depositors' deposit was in trouble in case of yes bank. Where was so called stable Pvt banks like ICICI bank, HDFC bank , Kotak Bank. Why all Pvt sector bank were only busy in looking drama at the time of consiquencies of yes bank. Why yes bank suddenly falled? That shows the Pvt sector never show true balance sheets. Why today icici bank md shrimati chanda kochar is facing legal actions...!!! Much more to know about so called Pvt sector banks.

    drgmani.apollohospitals

    In Reply to kushal_shah_1 1 month ago

    Private bank corruption is just a drop....all psu or government banks are corrupted from the sweeper to the manager

    tapanksur

    1 month ago

    The only way to stop this one-way narrative after elections, when common citizens become the lords, can be effectively put on the correct track along with the same common man who remains in their own domain after voting, is to campaign for "RIGHT TO RECALL", even the Aliens will once again descend on earth to live with us!

    REPLY

    nageshshetty2000

    In Reply to tapanksur 1 month ago

    Going by the current scenario , the privatization is not a solution at all . Government may be considering this move to monetize its holdings . Already PSU banks are in a big mess because of mergers and high end accounts of those banks have already shifted / migrated to private sector banks as it is taking time for these banks to stabilize in terms of staff deployment and also rationalization of the resources and confusion these mergers have created .

    drgmani.apollohospitals

    In Reply to nageshshetty2000 1 month ago

    There is no choice...NO PAIN NO GAIN UNDERSTAND...

    everestvilla.manali

    In Reply to nageshshetty2000 1 month ago

    Can PSUs survive without govt support in other words without taxpayers money and contribute to nation they are eating into taxpayers money thus hindering growth as such govt want to get rid of these burden on society and nation

    mwonderboy1

    In Reply to everestvilla.manali 1 month ago

    Let them privatise everything even govt depts.

    mailayan.mukherjee2018

    In Reply to mwonderboy1 1 month ago

    Exactly, I really do believe that if Narendra Modi remains our PM till 2024, even the Government of India will also be privatized. Because til then there will not be anything else left to be sold to Ambani Or Adani.

    drgmani.apollohospitals

    In Reply to mailayan.mukherjee2018 1 month ago

    PRIVATIZATION IS THE ONLY HOPE....SOCIALISM IS A BIG FAILURE....ONLY CAPITALIST AND CAPITALISM WORKS!!!

    sudarshan.deshpande

    In Reply to mailayan.mukherjee2018 1 month ago

    Modi work better if Parliment Privatized πŸ˜€

    drgmani.apollohospitals

    In Reply to mwonderboy1 1 month ago

    Yes everything should be privatized....then there would be accountability....perform or perish....hire and fire....

    drgmani.apollohospitals

    In Reply to everestvilla.manali 1 month ago

    So psu banks have to be privatized

    drgmani.apollohospitals

    In Reply to everestvilla.manali 1 month ago

    They cannot...government banks are most corrupt

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