Left criticises privatisation of PSBs

New Delhi, Dec 3 (UNI) Terming Banking sector reforms a ploy ''to serve the purpose of corporate sector'', CPI National General Secretary D Raja today said privatisation of Public Sector Banks (PSBs) is 'anti-poor'. Thousands of bank employees, wearing red shirts, under the banner of All India Bank Employees' Association (AIBEA) and All India Bank Officers' Association (AIBOA) today gathered at Parliament Street here to oppose the government's plan to dilute the government equity capital in the PSBs. Mr Raja said, ''The government should not undermine the importance of Banking sector, which undeniably plays an important role in strengthening the economy of the country.'' The government has planned to reform the Banking sector through privatisation of the PSBs, closure and merger of Associate banks and other PSBs with the SBI and amendment of the Banking Regulation Act to allow full voting rights to foreign investors in the Banking sector. Addressing the agitators, CPI(M) leader Sitaram Yechury assured them that his party would take their voice to Parliament. Criticising the Congress government, he said on one hand they say that nationalisation of banks had helped India to face the challenge of economic slowdown and on the other, they were conspiring to privatise the PSBs. On the issue of taking Rs 10,000 crore (2 billion dollar) loan from the World Bank to capitalise the PSBs, he said, ''We have enough money in our country to do that and taking loan from the World Bank will only put sanctions on us which will hinder our growth.'' Saying that the only PSBs were under poor people's reach, AIBEA General Secretary C H Venkatachalam told UNI, ''We want government to adopt people-oriented banking policy rather than corporate oriented.'' ''The government's plan to expand the Banking sector through consolidation and privatisation will not help the poor because big banks only care about big customers hence there won't be any bank left to give loans to the farmers and small traders,'' he added. Replying to a question whether India should have a central bank like other developed nations, Mr Venkatachalam replied, ''There is no need of such a bank but a Central Banking Authority is necessary.'' The representatives of the organisation submitted a memorandum in this regard to Union Finance Minister Pranab Mukherjee demanding that there should be no dilution of government equity in the PSBs and no merger of PSBs. Indian National Trade Union Congress (INTUC) president Sanjeeva Reddy said, ''We want government to strengthen the Banking Sector rather than destroy it.'' The merger and privatisation of the PSBs would cut the employment potential of the Banking industry which would have adverse effect on the growth of the country, he added. Mr Venkatachalam said if the government refuses to listen to the demands, they would observe a nationwide bandh on December 16 Links: http://www.newkerala.com/news/fullnews-3732.html http://news.webindia123.com/news/articles/India/20091203/1397061.html http://content.usatoday.com/topics/article/Organizations/International+Agencies,+Alliances,+Cartels/World+Bank/02Zse3l4CW5dz/1