Bank privatization the sole objective is to hand over domestic savings for corporate loot

Dear Comrade,

It is in common knowledge that successive governments have been pushing the agenda of privatization of Public Sector Bank to subserve the interest of private and international finance capital. The sole objective is to hand over  domestic savings for corporate loot. The government of the day led by BJP  fast tracked consolidation of PSBs. With the announcement made by the government to have only 4-5 PSBs,  the added  push is for disinvestment of PSBs and also the move is afoot to privatise a number of  PSBs. If the media reports are any guide, our own bank is on the radar of either consolidation or privatization. To take the agenda of the government forward, the management of our own bank has convened an Extraordinary General Body meeting of shareholders on 19. 09. 2020 to seek approval - (1) to transfer of money (around Rs. 35 thousand crore) lying in Share premium account to set off accumulated losses (amounting to around Rs.23 thousand crore) to clean balance sheet (2) to raise capital to the tune of  Rs.8000/= crore  from the market by share issue, QIP etc with a view to reducing government's share in capital structure of the bank (3) to raise additional capital of Rs. 8000/= crore by way of augmentation of Tier I and  Tier II capital. Electronic Voting is begin on 16. 09. 2020 to seek approval of shareholders. Employees are minority shareholders. Employees have also purchased shares at premium to help the bank grow in an orderly manner. Employees had never the intention to purchase shares at premium to enable the management to set off accumulated losses. The big slice of accumulated business  losses is due to default in repayment of loan by those borrowers who flaunt lavish lifestyle. Employees are not to pay any portion of accumulated losses. Employees have legitimate expectations to get bonus shares out of the money lying in share premium account. In our own understanding, the steps, as above, are intended to clean balance sheet to attract potential buyers of government's shares in the bank. It is paving the way for privatisation. 

 In view of above, it has been decided to register our protest against disinvestment of shares of our bank on 16. 09. 2020 (tomorrow) by waring badge during working hours. The format of the badge in pdf file has been sent to all General Secretaries of affiliated units. Please get the badges printed at local/ branch level , wear the badge as directed without exception and register strong protest against the move of  privatization of our bank in a systematic way. We are sure that members will rise to the occasion and make the call of badge wearing a grand success. Circular follows.

TOGETHER FIGHT, TOGETHER WIN.

With warm greetings

Dinesh Jha Lallan