Business/Economy

AIBEA opposes demands for privatisation of PSBs

AIBEA opposes demands for privatisation of PSBs

All India Bank Employees' Association (AIBEA) banks have made a strong pitch for nationalization of private sector lenders amid allegation of corporate governance lapses and concealing of information.

Employees unions of the public sector in a statement on Saturday, AIBEA General Secretary Ch Venkatachalam said ever since the Punjab National Bank- diamantaire Nirav Modi Rs 13,000 Crore Scam came to light, there has been the strong voice from different corners demanding privatization of Public Sector Banks.

It started with ASSOCHAM making this demand, then followed by FICCI, Chief Economic Adviser to Government of India Arvind Subramanian, Indian-American Economist Arvind Panagariya, Non-Executive Chairman of Infosys Nandan Neilkani, Ex-Comptroller and Auditor General of India Vinod Rai.

All India Bank Employees' Association (AIBEA) General Secretary C H Venkatachalam said everyone is by now aware what is the reality about the so-called champions of efficiency in the banking sector.

He added, "Both ICICI Bank and Axis Bank together have deposits of the public to the tune of Rs 9 lakh crore. We need to safeguard this public money. They talked about better governance in private banks. ICICI Bank was projected as a role model. What happened to that now.”

There are serious charges of corruption and nepotism in sanction of loans, adding there is repeated suppression of bad loans and under-provisioning.