[Marxistindia] Stop Merger of Public Sector Banks

[news from the cpi(m)]

January 15, 2019

 

Press Statement

 

The Polit Bureau of Communist Party of India (Marxist) has issued the
following statement:

 

Stop Merger of Public Sector Banks

 

The Polit Bureau is deeply concerned at the un-seemly haste with which the
government of India has been going ahead with the merger/amalgamation
process of three nationalized banks viz., Vijaya Bank, Bank of Baroda and
Dena Bank ignoring the collective opposition of the employees and officers
together of the entire industry.

 

The merger of banks is being justified by the Government on ground of
strengthening and consolidating the concerned banks; but in reality, such a
merger will further weaken all the three banks post merger. Problems of
public sector banks emanate from the deliberate default in loan-repayment by
the big corporate houses. The solution lies in stern action by the
Government for outright recovery of the huge loan amounts from these
defaulter corporates with penalty instead of the futile exercise on merger.


 

However, the Government has been displaying a totally indulgent attitude to
the defaulter corporates and through the Insolvency and Bankruptcy Code
(IBC) procedure public sector banks are being forced to accept big reduction
of the defaulted loan amount.

 

Such merger of banks, instead of addressing their basic problems, will
actually result in squeezing the banks' operational areas through inevitable
closure of several branches seriously affecting employment. It also affects
the spread and availability of banking services for common people
particularly in comparatively remote areas.    

 

The CPI(M) opposes the harmful exercise of merger of banks and calls upon
the government to desist from such moves. 

 

 

 

(Hari Singh Kang)

For Central Committee Office

 

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