Speaking at the inauguration of the 22nd Conference of the Karnataka Bank Employees Association on Saturday, AIBEA General Secretary C H Venkatachalam, criticised the central government for encouraging private sector banks over public sector banks.

“Instead of increasing the number of public sector banks the government is encouraging private players. Besides, they are also encouraging the entry of foreign banks which is not good for the public sector banks,” he said.
He added that most of the banking companies were more focused on increasing branches in the cities and town instead of the rural areas.

“In the 2005-06 about 933 new branches were set up of this only two were setup in the rural areas. Similarly, in 2006-07 of the 2300 new branches only 32 were set up in the rural areas,” he said.

Criticising the economic polices of the government he said that it more keen on improving the lives of the rich rather than the poor. He said, that though there were 538 millionaires in the country, a population of more than 70 crore struggled to earn a mere Rs 20 per day. “The government claims that country is progressing on all fronts but it is only benefiting a few,” he said.