WHO WILL SAVE PRIVATE BANKING SECTOR IN INDIA, IF FM KEEP IT'S WORDS ?
Recently, while placing the budget for the year 2021-22, Finance Minister clued complete privatisation of two Public sector banks, without disclosing names of these two banks.
If we see the recent banking history, we will find, whenever any Private Sector Bank gets into trouble, leaving no sources of recoveries, they are tied up to the neck of Public Sector Banks. Banking history is full of such instances. Only exception was one 'LORD KRISHNA BANK'. This private bank was happily taken over by HDFC Bank having sufficient fixed and real assets. Mr. Deepak Parekh was shrewd enough to take into account the asset qualities of Lord Krishna Bank.
Except this 'only' example, every time, failed Private Bank was merged with Public sector banks. May it be 'Bank of Karad' which was merged with 'Bank of India'(Harshad Mehta scam), or may it be ' Nedungadi Bank' which was merged with 'Punjab National Bank'(Ketan Parekh scam) or may it be 'Global Trust Bank ' which was merged with erstwhile 'Oriental Bank of Commerce' (Ramesh Gelli)
Every time PSBs have compelled to succumb the injuries made by private players. Government being the large stake holders, the respective Boards of Directors have left no option but to affirm the will of government. This act of sin have been committed by every political party, may it be INC or BJP, in remote cases left political parties also have run the race with national parties.
Very recently, State Bank of India were directed to look after the health of 'Yes Bank' (Rana Kapoor)
The process is same. Find any private bank in danger and tie it with PSB, without even thinking the future consequences of the decision.
If this habits of ruling party continues, we are around the corner, when we will put the banking sector in economic mess.
That would be the worst day in the history of Nation. Just imagine, all PSBs are merged with each other and placed a tag of 'privatisation' on their face, who will come to their rescue if these newly privatise banks comes in financial crisis.
At that time whole banking sector shall collapse like anything, conseqenting fall of economy which further collapses the entire Nation.
This is not day dreaming. Just recall, post COVID-19 scenario, Indian economy have reset itself in the upward curve within very short time compared to the remaining world. This was made possible only by the Indian Public Sector Banks. These PSBs were there to cater every need, may it be of government or a common man. Not on a single day banking sector was removed their support or ran away from their prime duties. And, the result is before us !
Definitely, with process of merger - amalgamation- privatisation, the government is playing with fire, keeping themselves at safe distance.
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