The panel, headed by former Chairman of Axis Bank P. J. Nayak, on Tuesday, said that the government should cut its holding in public sector banks to less than 50 per cent.

The All-India Bank Employees’ Association (AIBEA) has demanded the rejection of the Nayak panel report on bank privatisation.

The panel, headed by former Chairman of Axis Bank P. J. Nayak, on Tuesday, said that the government should cut its holding in public sector banks to less than 50 per cent. Further, it also suggested the government to distance itself from several governance functions. The panel also wanted all banks to be incorporated under the Companies Act.

In a statement issued on Wednesday, AIBEA general secretary C. H. Venkatachalam said: “It is sad that the panel had recommended public sector banks to be handed over to private hands at a time when the bulk of the bad loans are attributable to the private sector. More than four lakh crore rupees of bad loans are due from the big private corporate and business enterprises. Given the bad track record of the private banks in our country, all the private banks should be nationalised and brought under public sector banking.”

Mr. Venkatachalam said AIBEA would organise demonstrations, rallies and other protest programmes, if the report was not rejected.

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