AIBOC Sounds Alarm: PSU Banks in Serious Danger of Privatization.

privatization

The country’s organization of bank officers, the All India Bank Officers’ Confederation (AIBOC), stated on Tuesday that state-run lenders are in “real danger of privatization” despite being essential to bridging the economic gap in society.

The Guwahati-based organization said that public sector banks (PSBs) have contributed significantly to the advancement of financial inclusion and the mobilization of savings since the nationalization of the lenders in 1969 on the occasion of India’s 55th Bank Nationalization Day.

privatization

He noted that since being nationalized, these PSBs have been directing money into important industries including agriculture, small and medium-sized businesses (SMEs), education, and infrastructure.

According to AIBOC, PSBs are essential in bridging the economic gap and guaranteeing banking access to the underserved elements of society in order to promote a more equitable economic environment as income disparity becomes an important issue in society. When asking PSBs to carry out its social agenda, the government “should consider funding the cost of services rendered by PSBs at market value as an appropriate measure to scrutinise the commercial activity of PSBs,” it continued.

This comes on top of the corporate taxes and other taxes that all businesses, including PSBs, must pay. SBI has 1,900 clients per staff, compared to 530 for HDFC and 325 for Axis Bank, said the speaker. The AIBOC official noted that as a result, standards and benchmarks for these India-specific PSBs must be developed expressly, and their performance must be evaluated and contrasted among themselves.

Roy said that the staff members of the public sector lenders have been instrumental in maintaining national ideals and providing the citizenry with the highest level of dedication. He said, “They have persevered through a number of economic cycles, shown tenacity, and continued to offer essential financial services without interruption even during trying times and amid tragedies.

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The fact that pensions for retirees, who have given their careers to nation-building, have not been updated and enhanced on a level with government and RBI personnel is also a major cause for worry, he continued. The AIBOC pleaded on decision-makers, authorities, and other interested parties to acknowledge the crucial contributions made by PSBs and their staff.

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