AIBOC: PSU banks face a significant threat of privatization

19 Jul 2023 , 10:36 AM

The country’s top bank officers organization, the All India Bank Officers’ Confederation (AIBOC), stated on Tuesday that state-run institutions are in ‘real danger of privatization’ despite being essential to bridging the economic gap in society. 

The Guwahati-based organization said that public sector banks (PSBs) have contributed significantly to the advancement of financial inclusion and the mobilization of savings since the nationalization of the lenders in 1969 on the occasion of India’s 55th Bank Nationalisation Day.

‘Public Sector Banks are seriously at risk of being privatized. It is an intellectual battle that may be resolved by promoting the opposing worldview, which places the well-being of a greater number of people above everything else, according to AIBOC general secretary Rupam Roy, who talked to ET.

He noted that since being nationalized, these PSBs have been directing money towards important industries including agriculture, small and medium-sized businesses (SMEs), education, and infrastructure.

According to the statement, ‘They have been the pillars of economic development, encouraging growth and giving millions of Indians access to banking services.’

According to AIBOC, PSBs are essential in bridging the economic gap and ensuring banking access to the underserved elements of society in order to promote a more equitable economic environment as income disparity becomes an urgent issue in society.

When asking PSBs to carry out its social agenda, the government ‘should consider funding the cost of services rendered by PSBs at market value as an appropriate measure to scrutinize the commercial activity of PSBs,’ it continued.

According to Roy’s remark, the government is the primary recipient of the dividends that the state-run banks pay out of their profits because it is the largest stakeholder in PSBs.

The AIBOC asked decision-makers, authorities, and other interested parties to acknowledge the crucial contributions made by PSBs and their staff.

It said, ‘Preserving the nationalization ethos and strengthening our financial sector for a prosperous future is essential to addressing their legitimate demands and ensuring their well-being.’

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