AIBOC CIRCULAR NO. 102 DATED 19.07.2010

AIBOC issued its circular No. 102 on bank nationalization. We are reproducing the same here for our readers.

CIRCULAR NO: 102                                              DATE: 19.07.2010

TO ALL AFFILIATES/MEMBERS:

BANK NATIONALIZATION ENTERS 5^TH DECADE - 19^TH JULY – A DAY OF REMEMBRANCE FOR ALL OF US

The country has witnessed the phenomenal economic growth during the last 4 decades, ever since the 14 Banks were Nationalised on 19^th July 1969 followed by another 6 Banks in the April 1980, thereby bringing more than 90% of the Banking operations under the umbrella of the Public Sector ownership.  Thanks to the historic decision of the National Congress under the stewardship of Madame Smt.Indira Gandhi, former Prime Minster the legendary figure in the Indian politics who, decided to take over the Banking Industry under the ownership of the Government on the basis of the Capital base of the banks.  The Nationalization  in the first instance gave a tremendous boost to the realization of the dreams that were cherished under the 5 year Plans as well as a number of socio-economic policies of the Government with an intention to create a Welfare State giving ventilation to the objectives of the Constitution of India, to ensure social, economic and political freedom and equality to each and every citizen of the country.

The contributions of the Banking Sector which is under the ownership of the Government towards the economic prosperity of the country cannot be described in just few lines.  It is a saga of struggles, sacrifices and dedication of thousands and thousands of employees and officers who stood by the Government, supported by their trade unions, in particular the Officers’ fraternity who had the support of the Confederation to motivate and energize them to take up the responsibility of providing economic freedom to the teeming millions of population living below the poverty line spread across the country and suffering for want of support to eke out their living. It is the Banking Industry and the Officers’ fraternity who lived upto the expectations of the Government created history, by taking the banking facilities to every nook and corner of the country unmindful of the topographical disadvantages, erratic climatic conditions, living conditions, accommodation, medical facilities, educational facilities etc.  It will not be out of place to mention that there may not be a Post Office, there may not be a Railway Station but there may not be a primary school, there may not be primary health centre, there may not be police station and motorable road, potable water definitely Branches of the Nationalized Banks have found a place in almost all the interior parts of the backward states as well as the progressive states. The Officers were willing to move across the country, they did not bother about the living conditions nor the language problem.  The language of hunger, poverty and ignorance of the people being common, it spreads beyond the barriers of language, creed, culture, cast and tradition.  Hence, a Banker was a welcome guest all over the country and he was treated as a part of the society all over the country.

We have a big list of successes behind us. The Success of Green Revolution, which was possible due to the contributions made towards agriculture and allied activities by lending by the banks in a massive way, which ensured the food security of India.  Thereafter it is yet another glorious success of the Public Sector Banks which ensured the White Revolution, providing plenty of milk and milk products to the undernourished nation and become one of the major economic activities of interior parts of the country. There was a silver revolution to boost the fisheries. We did not lag behind to stand by the industrial growth of the country.  The Small and Large enterprises, followed by the industrial houses, who ventured to invest huge amount of capital in core industries. All these sectors received equal support and co-operation from the Banking Industry.  The series of schemes brought out by the Government apart from various other schemes meant to help the backward and underprivileged were routed through the banking industry.  Our commitment to the cause of the Nation is applauded all over the country and our fights against handing over of the Public Sector Banks to private ownership have started paying rich dividends during the last couple of years.

One of the greatest contributions of the Public Sector Banks has been its reach to the common man, who is not in a position to have access to the banking resources which are nothing but the savings of the people of the country.  Hence, it was our slogan that the people’s savings should be for the  Peoples welfare, has now become the slogan of most of the Private Banks as well.  It is most unfortunate that the Government very often gets influenced by the media and gimmicks of the protagonists of the Globalization that the Banks should be privatized and the Government should withdraw its intervention.  Thanks, to the recent developments in US and other countries where hundreds of banks collapsed and the US administration has to take extraordinary steps of taking over some of the major Private Sector Banks.  The Government has now started looking at these Public Sector Banks as the real instruments to extend all their policies and programmes to the common man.

The All India Bank Officers’ Confederation is the first organization to declare a war against the so-called reforms in the financial sector, in particular the banking, by the Government with the sole objective of handing over these Public Sector Banks, temples of the country, to private owners during the beginning of 1991.  We went on a day’s strike opposing the recommendations of Shri.P.Narasimham Committee who submitted a tailor made and dictated report as required by the World Bank.  After these developments, the Government raised the issue of bad loans, capital adequacy, performance of the banks and bank employees as a plank for the purpose of creating a public opinion against the banking industry.  We withstood these attacks and succeeded in ensuring the existence of Public Sector banks including those who were in difficulties in the mid 1990’s and managed to wipe off the huge bad loans and create a large space for the Pubic Sector Banks in the area of reforms as well as the customer service during the last one and half-decade.  The Indian Public Sector Banks are now perceived as role models by the Western Countries after the US economic recession.  The RBI Regulatory role is being appreciated all over the world and they are curious about the Indian Banking system and its tenacity displayed during the economic recession, not only by withstanding its impact but surpassing the growth parameters in these difficult days.  It is a great transformation as far as the public and media opinion is concerned and the larger credit must go to the Confederation for such development since it stood firm against the attempts of dis-investment of the equity in the Public Sector less than 51% ,which  otherwise  would have enabled the Private Sector to take over the banking industry.  To-day, the Government is coming forward to provide equity and is seriously looking into our earlier stance since most of our predictions have come true during the last one decade.

The task is yet incomplete.  We need to keep a close vigil over the threat of take over by foreign investors.  We need to sharpen our skills, technology and above all match the wit and gimmicks of the so-called private sector as well as the foreign banks and pay back to them in their own coin so that ultimately our goal of the take over of the entire banking industry under the Public Sector is reached.  The Confederation with a positive and pro-active outlook had appointed an Independent Commission on Banking Financial Policies under the Chairmanship of Shri Shukla, former Secretary of Finance and the report submitted by the Commission has now proved that whatever the stand and views of the Confederation were right and the predictions have come true.  We need to carry forward our struggle and ensure that the old generation Private Sector banks that are akin to the Public Sector Banks, and  new generation Private Sector Bank  are nationalized.  Similarly, we need to pursue our struggle against different types of attacks on the Public Sector Banks including the so called consolidation, merger etc.

While, acknowledging the contributions of the Banking Industry after nationalization of the 20 Major Banks, let us also remember all those senior stalwarts who led this movement and launched several struggles to uphold the Public sector character of our Banks.  We have a great responsibility of carrying forward this struggle under the banner of the Confederation.  Let us resolve that we would ensure to bring all the Banks under the ownership of the Public Sector. Let us resolve that we will ensure, the responsibility given to us to support the economic prosperity of the common people will be carried forward with the same zeal and enthusiasm with which we have been doing over the last 4 decades. Let us also dream that by the completion of the Diamond Jubilee of this great organization, we should be able to bring all the banks under the ownership of the Government as a tribute to our predecessors and also as a gift to our posterity. 

Comrades, the 19^th July is not just another day in our life.  We should remember that the great act on the part of the Government in bringing the banks under its ownership, provided an opportunity to millions and millions of  employees and workers  to serve the nation over the last 40 years.  It also provided an opportunity to this group of people to display to the whole world that they are also soldiers dispensing economic freedom and justice to the teeming millions and millions of people living below the poverty line in the country.  Let us march forward with the firm determination to carry forward the banner of the Confederation in ensuring the success of our movement for all  times to come.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY