AIBEA Press Release – Condemn the Demand of ASSOCHAM to Privatise Banks
ALL INDIA BANK EMPLOYEES ASSOCIATION
Central Office:”PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522 Fax: 4500 2191, 2535 8853 Web:www.aibea.in
firstname.lastname@example.org & email@example.com
By C.H. VENKATACHALAM, GEN SECRETARY, AIBEA
• We condemn the demand of ASSOCHAM to pravatise Banks
• Let them advise their members to repay the Bank loans
• Assocham should condemn Nirav Modi for his cheating the Banks
It is very strange and interesting that the Associated Chamber of Commerce, the mouthpiece of the industrialists and business houses has suggested privatization of banks in view of the recent fraud in PNB.
They have conveniently forgotten the track record of private banks in our country.
No. of Private Banks Failed, Amalgamated, ceased to function/transferred their liabilities and Assets, went into liquidation between 1948 and 1968.
|In 20 years||736 private Banks|
Private Banks put under moratorium in public interest due mismanagement and gone out of existence from 1969.
|1969||1. Bank of Bihar|
|1970||2. National Bank of Lahore|
|1971||3. Eastern Bank|
|1974||4. Krishnarao Baldeo Bank|
|1976||5. Belgaum Bank|
|1985||6. Lakshmi Commercial Bank|
|1986||7. Miraj State Bank|
|1986||8. Hindustan Commercial Bank|
|1990||9. Traders Bank Ltd.|
|1990||10. Bank of Tamilnad|
|1990||11. Bank of Thanjavur|
|1991||12. Parur Central bank|
|1991||13. Purbanchal Bank|
|1993||14. Bank of Karad Ltd|
|1995||15. Kashinath Seth Bank|
|1997||16. Punjab Co-operative Bank Ltd|
|1997||17. Bari Doab Bank Ltd|
|1999||18. Bareilly Bank Ltd.|
|1999||19. 20th Century
Finance Corporation Ltd.
|1999||20. British Bank of Middle East|
|1999||21. Sikkim Bank Limited|
|2000||22. Times Bank Ltd|
|2001||23. Bank of Madura|
|2002||24. Benaras State Bank Ltd.|
|2003||25. Nedungadi Bank Ltd|
|2004||26. South Gujarat Local Area Bank|
|2004||27. Bank Muscat SAOG|
|2004||28. Global Trust Bank Ltd.|
|2006||29. Bank of Punjab|
|2006||30. Ganesh bank of Kurundwad|
|2006||31. UFJ Bank Ltd|
|2007||32. United Western Bank|
|2007||33. Lord Krishna Bank|
|2007||34. Sangli Bank|
|2007||35. Bharat Overseas Bank|
|2008||36. Centurion bank of Punjab|
If private banks are really efficient, why these Banks were closed down and merged with others. Most of these banks were merged with public sector banks. PSBs have become the Neelakana Mahadev to swallow the poison of failure of many private banks and it is funny that Assocham is asking PSBs to be privatized now. We understand their greed but they cannot claim that private banks are more efficient.
Secondly, take the alarmingly increasing bad loans in Banks. Who are the delinquents and who are the defaulters? Are all of them not private companies, industrialists and corporate houses? 12 cases of NAPs have been referred to NCLT for insolvency and bankruptcy proceedings involving Rs. 253,000 crores. Who are they? Is it their efficiency? Should banks be privatized and handed over to these people?
In the PNB fraud, no doubt there is an unpardonable sin on part of those officials who have gone out of the way to favour Nirav Modi. But who has tempted them and influenced them? Is it not private corporate giant Nirav Modi? Take any major fraud in our country. One will see the hand of private corporates in it.
Let them not forget that bulk of the loans given by public sector banks are to private corporate houses. If public sector banks are not efficient, why do they avail these loans from PSBs and why have not taken such loans from private banks.
Devil should not quote scriptures. We feel to advice Assocham to ask the private sector corporate defaulters to repay the bank loans to the PSBs and condemn NIMO for the fraud he has committed on PNB.