AIBOC issued its circular No. 68 dated 19.05.2010 opposing the merger of Bank of Rajasthan with ICICI Bank. We are reproducing the same here for our readers.
CIRCULAR NO:68 19TH MAY, 2010
TO ALL AFFILIATES/MEMBERS:
FUTURE OF BANK OF RAJASTHAN - CONFEDERATION TO OPPOSE MERGER MOVES
We have to-day sent a communication to the Hon’ble Minister of Finance, Government of India, New Delhi and also to Hon’ble Governor of RBI against the so called move of the merger of the Bank of Rajasthan with ICICI Bank. A Copy of our communication is annexed, which is self-explicit.
All our affiliates/members are requested to await for further developments in the matter.
With greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
No.1410/157/10 19.05.2010
Shri. Pranab Kumar Mukherjee, Shri. D.Subba Rao,
Hon’ble Finance Minister, Hon’ble Governor of
Government of India, Reserve Bank of India
South Block, Central Office,
Parliament House, Shahid Baghat Singh Road,
NEW DELHI. MUMBAI - 400 001.
Dear Sir,
FUTURE OF BANK OF RAJASTHAN - PROMOTERS DEAL WITH ICICI BANK
We are disturbed by the reports appearing in both press as well as electronic media, as regards the so called decision of the Boards of the Bank of Rajasthan and also the ICICI Bank on the take over of the Bank of Rajasthan by the ICICI Bank, through buying the entire share holdings of Mr.Tayal and his group in a private treaty. This is yet another blow to the Old Generation Private Sector Bank, if this transactions are allowed to take place, since the Bank of Rajasthan which has made tremendous contributions for the economic growth of the State of Rajasthan and the surrounding northern states through a network of 434 branches in ensuring that the credit facilities reach the interior parts of most backward places of these States. The Bank of Rajasthan is one of the oldest Private Sector Banks functioning as per the policies and guidelines laid down by the Reserve Bank of India and the Central Government from time to time in particular the lending to the priority sector so that the State of Rajasthan as well as other backward states are able to ensure their economic growth on par with other states. The Bank has also established a number of branches in the interior parts of Rajasthan while several other banks had their own reservation in serving these parts of the country. The Employees and Officers of these banks have been rendering a yeomen service to the common people of the country.
We have seen in the recent past that the aggressive take over which had taken place in respect of Bank of Madura by ICICI only led to frustration amongst the employees and Officers in the Bank and the ICICI Bank utilised the Bank of Madura to add to the number of branches but the yeomen service that was being rendered by the bank earlier was given a go by. Same is the case of Lord Krishna Bank, which was taken over by the Centurian Bank and subsequently by the HDFC Bank, thereby pushing these banks into the fold of the Banks, now controlled by multinationals.
The Confederation and its affiliates have been opposing any attempt by the new generation private Banks to take over the old Generation Private Banks with their traditional bond with the local people which are akin to the Nationalized Banks in their style of functioning as well as in discharging of their duties to the cause of the common man in this country. The events which led to the so called in principle decision of the Boards of both the banks has an organised attempt by the Promoter to hand over the Bank of Rajasthan on a platter to the ICICI bank knowing very well that there is a total opposition by the employees and officers working in this bank as well as the local public. We were hoping that with the intervention of the RBI in the matter of ensuring that the Bank of Rajasthan is functioning on a proper line by strengthening the Bank as an independent private bank restoring its past glory. But the developments are contrary to our expectations.
We therefore request you to kindly intervene and provide alternative proposal for the Bank of Rajasthan to overcome the current aggressive take over by the ICICI Bank in order to ensure that the faith and trust of the General public, employees and officers in the regulator is not shattered. We are also against this so called merger. There is scope for the alternatives for helping the Bank of Rajasthan to come out of the present difficulties and the promoters should not be allowed to push the bank to the lap of the ICICI Bank and to make huge profits for himself and his associates in the process leaving the employees and officers who were the people who build this bank over the last several years in the lurch. We demand nationalisation of the Bank or merger with a Public Sector Bank instead of merging the Bank with a foreign bank.
Please look into the matter and take necessary steps without further delay.
Please treat the matter as urgent.
Thanking you,
Yours faithfully,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
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