Today, the public sector bankers are raising their voice on Twitter against privatisation of Public Sector Banks (PSBs). According to a , think tank, NITI Aayog, has proposed to privatise select PSBs.
It is stated that high-level meetings have been arranged to discuss this process. This is ironic as PSBs are usually used by the government to implement various national-level schemes.
It has to be noted that the office of Finance Minister Nirmala Sitharaman posted the details of the PSBs that have sanctioned loans worth Rs 17,705.64 crore under the 100 per cent Emergency Credit Line Guarantee Scheme. Out of which Rs 8,320.24 crore have been disbursed, as of June 5. This post of the ministry was faced with criticism for promoting privatisation of banks that help the government to reach to its masses.
While many have been posting their view against privatisation, there are some in favour of privatisation as well.
Meanwhile, the government has been merging many public sector banks over the last few years. On March 4, the Cabinet Committee on Economic Affairs (CCEA) approved consolidation of 10 state-run banks into four. As per the proposal, Oriental Bank of Commerce (OBC) and United Bank of India (UBI) would be merged into Punjab National Bank (PNB). The move will make PNB India’s second biggest public sector bank after State Bank of India (SBI).
Syndicate Bank will be merged with Canara Bank; Union Bank of India, Andhra Bank and Corporation Bank will be merged together; Indian Bank and Allahabad Bank will be merged as well.
In the past, IDBI was recognised as a private sector bank, after state-run LIC acquired a majority stake. While there were no jobs cut during this re-categorisation was suit the regulatory requirement.