AIBEA TO LAUNCH NATIONAL CAMPAIGN AGAINST BANKING REFORMS

Ludhiana, September 2, 2018: 12th Conference of Punjab Bank Employees Federation was held at Ludhiana successfully with unprecedented jubilation. The bank employees of the city were highly enthusiastic about the gala event at Ludhiana. The venue, Shree Guru Nanak Dev Auditorium was beautifully decorated with flowers and banners depicting the demands of bank employees and was giving a festive look. Com.C.H.Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA), Com.Rajen Nagar, President, (AIBEA), Com.J.P.Sharma, Vice President AIBEA, Com.Rajesh Bansal, Joint Treasurer, Com. Vinod Sharma, Joint Secretary, AIBOA, Com. Bant Brar, President, Pb. State Committee All India Trade Union Congress and Com. Nirmal Singh, General Secretary (Pb. State Committee, AITUC) were welcomed with slogans on their arrival at the Gate AIBEA-ZINDABAD, PBEF-ZINDABAD, UFBU-ZINDABAD. Thereafter, flag of AIBEA was unfurled amidst slogans, noise of crackers and airing of balloons. Com. C H Venkatachalam, General Secretary, AIBEA while inaugurating the Conference said that All India Bank Employees Association, the oldest and largest trade union of bank employees in India representing nearly five lac employees from Public Sector Banks, Private Sector Banks, Foreign Banks, Co-operative Banks, and Regional Rural Banks, has launched a national campaign to mark the 50th Year of Bank Nationalisation to enlist support to our demands to strengthen our Public sector Banks. Strengthen Public Sector Banks – Do not privatise : Banks today have about Rs. 115 lac crores of Deposits which represents the hard earned savings of the common people. Public Sector Banks should be further strengthened to safeguard this precious savings of the people kept in the Banks as Deposits. But Government wants to implement their banking reform policies aimed at privatisation of Banks and deregulation of rules in favour of the corporates. If Banks are privatised, there is risk for people’s money as private corporate owners will use this money for their own business purpose and not for national development. Open more Branches in unbanked rural areas: There are frive lacs villages where there is no bank branch. When more and more bank branches are to be opened in the rural areas, Government is talking of merging the Banks and closing down branches. This will make banking less accessible to common people. Nationalise ICICI Bank, Axis Bank and other private banks: ICICI Bank is caught in scams like Videocon loan of Rs. 3250 crores and Axis Bank is also charged with manipulations in accounting of bad loans, etc, it is high time that ICICI Bank, Axis Bank and other private Banks are nationalised and brought under government purview. But our Government wants to privatise our Government banks and sell them to corporate houses. Huge Bad Loans in Banks: Bad loans in the Banks have gone up alarmingly and it is around Rs. 10 lac crores. Government has admitted in the Parliament that there are 9063 wilful defaulters who alone owe Rs. 110,050 crores. Bad Loans/ NPAs, the real problem: The real problem in the banks is the mounting bad loans. Year Gross Bad Loans 2011 74,664 crores 2012 1,17,000 2013 1,64,461 2014 2,16,739 2015 2,78,877 2016 5,39,955 2017 6,41,000 now 10 lac crores Only 12 corporate companies have defaulted Rs. 2,53,000 crores. Speakers said, we demand that wilful default should be declared as a criminal offence and criminal action should be taken. But all types of concessions are being given to the defaulters. Defaulters and cheaters have escaped to foreign countries and Govt. should immediately bring them to India and punish them. In the name of Insolvency and Bankruptcy Code, corporate defaulters are relieved of their huge obligation to the Banks and these bad loans are sold to other corporates for cheat rates. Thus Banks are the losers in the process. Burden on the common people: On the other hand, all types of service charges and penalties are being levied for common people. It is shine for the corporates and pain for the common people. We welcome the withdrawal FRDI Bill: Govt. brought the FRDI Bill in the Parliament which provided for using people’s deposits to bail out banks from losses incurred due to bad loans. AIBEA opposed the Bill vehemently in public interest and we are happy that due to the press of the people, Govt. has withdrawn the Bill. Honour commitment on IDBI Bank: Recently Govt. has decided that its stake in IDBI Bank will be reduced to less than 51% and allow LIC to invest in IDBI Bank upto 51%. In IDBI Bank, the bad loans are more than Rs. 55,000 crores. All are corporate defaulters like Kingfisher Mallya. Instead of taking tough action to recover bad loans, LIC is asked to invest in the capital of IDBI Bank and this will be utilized to write off the bad loans. In 2004, Government assured on the floor of Parliament that their stake in IDBI Bank will remain not less than 51% but now they are going back on their commitment. Banks are nation building institutions, they must remain in public sector. Bank reforms are meant to hand over the banks to private corporates. We must save public sector banks in national interest. All India Strike: On these issues AIBEA has started the campaign throughout the country. If Government does not change their policy and will proceed with their banking reforms policies like privatization of banks, bank employees will observe All India Strikes to oppose the same.