It's
not the debate between big banks versus small banks that worries the workforce
of old banks. Rather it is the discrimination between old private banks and new
private banks.
‘We
are a discriminated lot,' said the President of the All India Private Sector
Bank Officers' Federation (AIPSBOF), Mr K. Anandakumar. He says old private
banks implement government-sponsored schemes effectively.
But
he is peeved that new banks aren't asked to do that. “Such schemes are not
thrust on the new private banks. Why?' His solution for the problem: Immediate
nationalisation or takeover of all old private banks by State-owned
institutions.
Yet
another reason for demanding ‘immediate' nationalisation of these banks is a
proposed amendment in the Banking Law Amendment Bill 2011, which seeks to
remove the ceiling on voting rights of foreign investors.
FOREIGN INVESTMENT
“This
Bill, if passed in Parliament, will only spell doom on the old private banks.
Today, there is a 10 per cent ceiling on the voting rights of foreign investors
in banks such as ours.
“If
this clause is deleted, the foreign investors would have full voting rights
without any ceiling and proportionate to their capital investment. Old private
banks would become vulnerable for takeover by foreign capital,” said Mr
Anandakumar.
Speaking
to Business Line on the sidelines of the 8th Triennial National
Conference of the AIPSBOF, he said “we are opposed to the new policy
pronouncements by the Ministry of Finance. The foreign capital in some of the
private banks is already quite high. Allowing and encouraging more foreign
capital and removal of the ceiling on the exiting voting rights will be highly
detrimental to the country and the banking industry as a whole.”
+1.jpg)
0 comments
Post a Comment