‘Bank mergers are for privatisation’

Banking mergers are not to save debt-ridden banks but to pave the way for privatisation eventually, it was pointed out at the Global Banking Trade Union convention, organised by the All India Bank Officers’ Confederation.

Because of the merger of banks, the volume of loans which were being made available in priority sectors and agri-small scale industrial sectors are coming down. The legal prospects of recovering loans taken by corporates from banks and which have become debts are very limited in India.

Some 15 years ago, the state of affairs in public sector banks in India and China were the same. Today four prominent Chinese banks have become front-runner banks in the world. Loan repayments conditions are strict in China. Public sector banking declined in India and ran into huge losses.

A seminar on banking mergers and protection of public sector banks was held as part of the convention on Monday.

Technology and innovations in banking sector, and Challenges faced by public sector banks in rural developments were some of the topics discussed.

Experts from the socio-economic sectors, and officers’ unions in various Indian banks are participating in the convention, which has been organised in association with Global Labour University.