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BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first****Outcome of Today’s meeting with IBA - 31.01.2023*********

Saturday, March 7, 2020

Everytime PSBs have become the *Neelkantha Mahadev* to swallow the poison of failure of many private banks

*PSB Nilkanth Mahadev...*
ALL INDIA BANK OFFICERS’ CONFEDERATION (AIBOC),  DENOUNCES THE PROPOSED BAIL OUT OF YES BANK .

AIBOC, the largest supervisory cadre trade union in the banking industry of the country, having a membership of over 3.20 lakh officers, strongly denounces the proposed move of bailing out the beleaguered Yes Bank, the fourth largest private sector bank of the country.
Between 1947 and 1969, *559 private banks in India failed,* with numerous people losing their life’s savings. It was only after the nationalisation of the  banks in India in 1969 that the banking system attained stability ..
After BANK NATIONALISATION (1969)40 PRIVATE BANKS FAILED BUT NOT A SINGLE PUBLIC SECTOR BANK HAVE FACED ANY PROBLEM TILL NOW DESPITE VARIOUS STEP-MOTHERLY ATTITUDE FROM THE MASTERS.
A large number (736) of Private Banks failed, amalgamated, ceased to function/ transferred their liabilities and Assets, went into liquidation between 1948 and
1968.

Private Banks put under moratorium in public interest due mismanagement and gone out of existence from 1969  are as under:
1969 1. Bank of Bihar
1970 2. National Bank of Lahore
1971 3. Eastern Bank
1974 4. Krishnarao Baldeo Bank
1976 5. Belgaum Bank
1985 6. Lakshmi Commercial Bank
1986 7. Miraj State Bank
1986 8. Hindustan Commercial Bank
1990 9. Traders Bank Ltd.
1990 10. Bank of Tamilnad
1990 11. Bank of Thanjavur
1991 12. Parur Central Bank
1991 13. Purbanchal Bank
1993 14. Bank of Karad Ltd.
1995 15. Kashinath Seth Bank
1997 16. Punjab Co-operative Bank Ltd.
1997 17. Bari Doab  Bank Ltd.
1999 18. Bareilly Bank Ltd.
1999 19. 20th Century Finance Corporation Ltd.
1999 20. British Bank of Middle East
1999 21. Sikkim Bank Limited
2000 22. Times Bank Ltd.
2001 23. Bank of Madura
2002 24. Benaras State Bank Ltd.
2003 25. Nedungadi Bank Ltd.
2004 26. South Gujarat Local Area Bank
2004 27. Bank Muscat SAOG
2004 28. Global Trust Bank Ltd.
2006 29. Bank of Punjab
2006 30. Ganesh bank of Kurundwad
2006 31. UFJ Bank Ltd.
2007 32. United Western Bank
2007 33. Lord Krishna Bank
2007 34. Sangli Bank
2007 35. Bharat Overseas Bank
2008 36. Centurion bank of Punjab
2019..37.PMC bank..
*2020  38. Yes Bank (under Moratorium*)

Moreover, whenever any Private bank has failed PSU banks were asked to  take over and give protection   to the people's hard earned money.. Everytime PSBs have become the *Neelkantha Mahadev* to swallow the poison of failure of many private banks. On the contrary the PSBs are blamed that "your goodwill is lost,personal connection with customer is lost"and blah...Blah....Blah....
But PSU bankers never mind it because...
 *हम सरकारी बैंक !हम देशवासियों की जमा राशि को सुरक्षित रखने के लिए हम कर्तव्यनिष्ठ हैं*
 *माना कि थोड़ी भीड़ रहती है हमारे यहां, लेकिन हिफाज़त से रखते है हम तमाम अमानते।*
 *हमने मुनाफा नही बनाया, लेकिन 'यकीन' किसी का तोड़ा भी नही है।*
It is funny that Assocham is asking PSBs to be privatised now. We understand their greed and we call it as *PRIVATISATION OF PROFIT AND NATIONALISATION OF LOSS..*
If public sector banks are not efficient, why after 2008 Public sector banks responded to the call of the nation for lending to infrastructure sector when all the private banks were sitting idle on funds as risk was involved in it.. Why the big corporates  availed all  these big loans from PSBs and why they did not  taken such loans from private banks? Country have not seen those efficient Private banks in any such crucial time when the nation was in dire need of financial support...Be it at the time of any bank failure, be it at the time of demonetization, be it for implementation of any Govt scheme which is not profitable but for nation building...Our regulators tried various means to instill distrust about PSU Banks  in the minds of  countrymen. They are finding avenues to give a bad name before hanging.
 *विभिन्न प्रचारों के बावजूद हमारे ग्राहकों ने हमें कभी नहीं छोड़ा और उन्होंने विभिन्न प्रयासों का मुँहतोड़ जवाब दियाi हम* *अपने बुरे समय पर हमारे साथ रहने के लिए हमारे ग्राहकों के आभारी हैं। हम अपने जमाकर्ताओं की पूरी सुरक्षा चाहते हैं।*
Viral Acharya, Deputy Governor of RBI and an advocate of PSB privatisation, admitted this when he said, “Indian private banking hasn’t raised its market share beyond 25 per cent. In fact, it shrunk after the 2007–08 crisis because the depositors, especially the corporates, flew back to State Bank of India and other public sector banks.”
Since October 2000, 555 private banks have failed in the US.
Most certainly, the hard-earned money of the common people of India would be considerably less safe in the hands of private banks. It is very much evident from the sudden failure of so called efficient banks one after another even in India. The episode of Global trust bank,the most trusted bank of the country had to put their shutters down and one Govt bank ORIENTAL BANK OF COMMERCE had to take over.
 *A Few months ago, PMC,* a small Private Co-operative bank caused a lot of trouble to people, because its Board has mishandled Public's money that was entrusted to them as deposit. A few thousand people faced troubles, but somehow it has ended now.
Again the  4th largest Private bank YES BANK is severe problem and again another PSU bank SBI has come forward for their rescue. Whether the regulators had formulated any plans to avoid such catastrophes in the first place is a point to ponder. If not, then who takes responsibility is the next question. Coming to the matter of intervention of SBI to bail out Yes Bank as reported in the media, it is difficult to fathom the logic behind it. SBI has just come out from the aftermath of a messy and lengthy process of amalgamation of anks, in spite of sharing a lot of synergy with them.
Industry bodies such as Assocham, FICCI and CII have demanded few days back that public sector banks (PSBs) be sold off to the private sector. Can we imagine the situation if SBI would have been privatized by now or OBC was not in existence in the year 2004 to take over GTB. All the political personalities that time agreed to it that in 2008 Indian economy came out unscratched due to the PSU Banks but in the next breath they advocated for privatization of Public sector banks. What A DICHOTOMY!!!!!!! We understand their greed and we call it as *PRIVATISATION OF PROFIT AND NATIONALISATION OF LOSS.*
One of the arguments being used to call for the privatisation of PSBs is the claim that private banks are more “efficient”,"they have connect with the customers". If this was the case, surely it could be expected that private banks would be more stable and less prone to failure.
 We understand their greed and we call it as PRIVATISATION OF PROFIT AND NATIONALISATION OF LOSS..If public sector banks are not efficient, why after 2008 Public sector banks responded to the call of the nation for lending to infrastructure sector when all the private banks were sitting idle on funds as risk was involved in it.. Why the big corporates   availed all  these big loans from PSBs and why have they not taken such loans from private banks? Country have not seen those efficient Private banks in any such time when the nation was in dire need of financial support...Be it at the time of any bank failure,be it at the time of demonetization,be it for implementation of any Govt scheme...
 Most certainly, the hard-earned money of the common people of India would be considerably less safe in the hands of private banks.
It’s still not too late for people to change their banking habbits and start turning towards Public Sector. Banks and help them protect from cruel intentions of some capitalist politicians to turn them into the loan sharks known as Private Banks. Public, in their best interest should leave the lure of extra interest offered by Private banks and understand there's  a  reason that word "Public" exists in name of Public  sector banks.
It is dire need of the hour that country needs to garner, utilise and harness the capital to achieve Government’s dream of $ 5 Trillion economy and this is only possible by strengthening Public Sector Banks.                          # STOP PRIVATISATION
                                     #SAVE PUBLIC SECTOR BANKS
Sanjay Das,
Joint General Secretary,AIBOC
Secretary ,AIBOC.WB

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