Government must ensure a level playing field for strong and committed private sector banks in all spheres said Managing Director and Chief Executive Officer of Karur Vysya Bank P. T. Kuppuswamy.
Participating at the Karur Vysya Bank Employees Union's 33rd All India Conference, which opened here on Saturday, he said that Karur Vysya Bank (KVB) had been in yeomen service since 1916 and its business had crossed Rs. 35,000 crore.
“The Bank also is committed to social obligations including educational and agricultural loans, which the Government has been advocating,” he said. But still these private banks with impeccable record were not getting government business.
At a time banks such as KVB were facing stiff competition from new generation private banks, the bank guarantees were not accepted by State Government undertakings though the balance sheet and other fundamental requisites were strong.
Private banks were not allowed to maintain pension funds while private insurance firms were permitted to do so.
He said that the Bank's 100th year would be celebrated in 2016 and the target would be Rs. 1,25,000 crore in total business. “This is possible only because of the contribution made from the staff and hence each employee can take pride in it,” he said.
Delivering the keynote address after launching the Union web site, All India Bank Employees Association general Secretary C. H. Venkatachalam pointed out that banks such as KVB had been in people's service for long and were inseparable from the masses.
Saying that banks had nearly 58 crore customer base, he said that government's wish to merge the banks to solve problems the banking industry was facing would not serve the purpose.
President of KVBEU J. Rajendran, who presided, said that there should be some restriction on the flow of foreign direct investment.