Excelsior Correspondent
JAMMU, Mar 6: All India Bank Officers’ Confederation (AIBOC), strongly denounced the proposed move of bailing out the beleaguered Yes Bank, the fourth largest private sector bank apparently by SBI and others.
“We are reminded of 2004 when the Global Trust Bank, another private sector bank was taken over by the Oriental Bank of Commerce as per diktat of the Government’’ The AIBOC said in a statement issued here, today. “The striking similarity in the high flyer profile of the CEOs of both the private banks and the much hyped market capitalization at the bourses is worth recapitulating’’, it added.
“This is not something new or innovative as a solution for the crisis. Rather it raises a question that lessons were not really learnt from previous experiences’’ the statement said.
The AIBOC said coming to the matter of intervention of SBI to bail out Yes Bank as reported, it is difficult to fathom the logic behind it.
It said such decisions should have been taken by the executives and approved by the Board which does not have any representation from the workmen and officers. Such direction is presumably forced upon the members of the Board, the statement added.
It said “On the one hand, we find that the Indian Bankers Association is dragging their feet with inordinate delay in settling the bipartite wage with the employees and officers represented by the recognized unions pleading lack of funds to meet the Wage Bill and the aspiration of the employees, officers and retirees while on the other hand huge
Corporate NPAs are being written off in a routine manner and without compunction and now, with bailouts of their competitors in the private sector, the whole financial infrastructure is being seriously compromised.
AIBOC demanded that private sector banks be put into stricter scrutiny to protect the customers or many more failures may haunt the country and affect millions of small depositors, who are lured to them with the much hyped promised of better customer service, professionalism, technology. AIBOC strongly and vehemently protested against the bailout of these new generation Private Sector Banks by the PSU Banks and warned the depositors, account holders, customers and the general citizens of the risks and dangers involved, not only to these banks but to the whole financial system of the nation.
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, the statement said.
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