Privatization of PSBs is unfortunate and will be counterproductive

Aurangabad, Feb 25:

Prime minister Narendra Modi has made a statement that the government will privatize all public sector banks (PSBs) which is most unfortunate and will prove to be counterproductive since private sector banks work for accounting profits while PSBs work for social profits, said the United Forum of Bank Unions (UFBU) in a statement.

Giving more information, UFBU convenor Devidas Tuljapurkar said, "India is still confronting with poverty, unemployment and hunger. There is a need to implement social sector lending schemes in which private sector banks hardly contribute. As of the day if we look at the implementation of the Jan-Dhan scheme share of private sector banks is less than 5 per cent. MUDRA, Swadhan, stand up India, Make in India all aim for employment generation in which the share of private sector banks is insignificant. Thus in the process, the common man will be pushed out of the orbits of banking and in turn development that is unaffordable. The government is using PSBs like SBI and LIC to bail out sinking private sector banks.

Two-day strike

Today banks are facing the biggest challenge of non-performing assets in which the share of corporates is more than 70 per cent. It is unfortunate that they will become the owners of those PSBs after privatization. Our PM is facilitating this move which may prove to be disastrous. Hence bank employees under the banner of UFBU are going on two days strike on March 15-16 to protest against privatization, Tuljapurkar said.