A collective comprising representatives of central trade unions, service organisations in the banking and insurance sectors, and political parties resolved here on Thursday to launch a national movement against the grave crisis gripping the financial sector and its threat to national freedom and integrity.
The movement, initiated by State Planning Board member K.N. Harilal, Bank Employees Federation of India leader Jose T. Abraham, laid accent on the need for a mass mobilisation to warn the Centre against privatisation of the banking sector and the crisis due to the spurt in the rate of non-performing assets.
CITU president Anthalavattom Anandan said that the current trend of corporates getting away with the funds in public sector banks would lead to a severe crisis. He also highlighted how corporate companies were being engaged to maintain historical monuments and called for a national level resistance to force the Centre for a policy reversal.
Mr. Harilal said the current rate of NPAs in bank was alarming and indicative of the crisis in the offing. The current attempt is to convert corporate deficit into bank deficit. Banking and insurance sectors survived the recession a decade ago mainly due to their strength and the confidence reposed in them by the public. More than the political leadership, those aligned with the World Bank are seeking to expedite privatisation of banks, he said.
Economist Praveen Jha said the evolving movement should challenge finance capital that had emerged as a powerful actor without any link to production. The root of the crisis could be traced to the rise of financial capital which is basically speculative, he said.
AITUC leader K.P. Rajendran said that the movement should not be confined to the academic circles and should comprise people from all sections. Leaders of various parties and service organisations and Planning Board member B. Ekbal attended the session.
