Banking is very sensitive sector N. Sitaraman

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Business Line Interview with Smt. Nirmala Sitharaman, Union Finance Minister:

2020 Oct. 30.

(Excerpts)

*Banking is very sensitive sector, what is the biggest challenge in this sector now especially in terms of reforms?*

Bank employees have done hard work during the lockdown and immediately after that. If anything, I would be answering to this question beginning with big thanks to all banks particularly the public sector banks and of course equally goes to private sector because employees of all the banks have really exposed to such a difficult environment, reaching out to far flung villages, ensuring all Government schemes to be implemented in good manner and that too with speed. I can not answer any question on banking sector without beginning it with a big thanks to all of them for the way which they sat with dedication.

Today I had a meeting with newly appointed SBI Chairman Dinesh Kumar Khara. One of the questions that I asked he may or may not be directly involved into it but as a big brother among all the banks, he should be talking to IBA to short out issues related with bank employees, their pension, family pension and pensions of those who retired ling time ago, whose pension does not commensurate with the pension of equal rank. So, that is something I am putting all my energy to make sure. I am communicating with IBA. Secretary (Banking) is also working with them. I told Dinesh Khara that this is something, I am very keen, I want bank employees to be given their dues. A lot of pensioners are waiting for very long time. Yesterday I had meeting with Rajkiran Rai of IBA. I spoke to him too. We need bank employees to be attended too, particularly their families and the pension of retired employees too. Pension matter, staff welfare, these are the issues on which I am definitely concerned.

Then the question is about last year amalgamated banks. I am again looking at how the amalgamation has affected itself, how the synergy is being worked out. Of course during corona time, I could not do much. Now, I will have to sit with them and make sure everything related with amalgamation is sorted out. I am also nudging them to go to the market to raise funds. On the one hand some of the banks are going out to issue papers and getting very good result out of it, on the other side, I am also telling them to go out to shed some equity.

One other thing, which I would probably in the later part of next year, to focus would be to have some more retail participation in ownership of the banks, have public have some shares in the banks. We will have to work out modality for that. So Indian citizens, want to part of the owners of the banks, why not, the Government does already own them.

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