JOIN US‘Centre’s move to privatise national banks would invite protests, strike’
In the ongoing monsoon session of Parliament, if the Centre introduces any legislation that might set into motion privatisation of national banks, the banking unions are ready to protest that could turn into a nationwide strike.
“We are apprehensive. The government may table the Bill to amend banking laws. If it’s done, we will have to go on a strike, though it’s our last resort. We don’t want to do so, but if any move is made to privatise banks, we will be left with no other choice,” Sanjay Das, general secretary of the All India Nationalised Bank Officers Federation, told DH.
Union leaders held a press conference in Kolkata on Tuesday to state their stand on the matter. A street-corner meeting was also organised, where bank employees also participated.
Banking unions are apprehensive that the government would move forward with the legislation that will pave the way to bring down the government's stake in public sector banks from 51 per cent to 26 per cent. In her 2021-22 budget speech, union finance minister Nirmala Sitharaman had proposed privatisation of two public sector banks.
Das claimed that the public sector banks have high non-performing assets (NPAs) in their accounts because of absence of strong action. “It’s not because of the public banking system, it’s because of the lack of stringent legal action against defaulters,” Das explained.
The idea of ‘bad banks’, said Das, was not a solution. “Shifting bad loans away clears the balance sheet of the banks. This makes the banks attractive for investors. But who will take care of loans in the bad banks? It will create pressure on the government. We term the idea as privatisation of profit, nationalisation of loss,” he said.
The unions have actively conducted campaigns on social media platforms and through public meetings against the privatisation. “If the government goes for a Bill, we will have to go for a strike,” Das said.