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Bank union writes to Jaitley against privatising PSBs
New Delhi, March 2 (IANS) Criticising the demand for privatising state-run banks in the wake of the Rs 12,600 crore PNB fraud, a bank employees’ body has written to Union Finance Minister Arun Jaitley that such a move would be “counterproductive”.
The Indian National Bank Employees Federation (INBEF), the banking wing of Congress- affiliated Indian National Trade Union Congress (INTUC), has said in the letter that privatising public sector banks (PSBs) would result in destroying their huge branch network across the country.
“Should the PSBs be handed over to private corporates, it will not only be counterproductive, but also lead to self-destruction of a well-knit huge branch network across the length and breadth of the country that services crores of people,” the INBEF said in the letter.
The union pointed to some gaps in the regulatory mechanism in regard to fraud played on the Indian banking system.
“Besides supervision, the Department of Banking Operations in the Reserve Bank of India (RBI) responsible for controlling the unwarranted risk in high-ticket advances is without a head ever since the then Deputy Governor S.S. Mundra retired in July 2017,” the union said.
“While there is a need to look into the performance of the Bank Boards Bureau, the transparency about the RBI policies during the tenure of then Governor Raghuram Rajan is being widely and openly compared with that of yes-men working presently,” it added.
Last week, the Finance Minister had criticised regulators, as well as bank managements and auditors, for their failure to detect bank frauds and said that “politicians are accountable but regulators are not”.
“What are our auditors doing? Both internal and external auditors really have looked the other way or failed to detect,” Jaitley said at an event here, without naming the Punjab National Bank scam.
Besides PNB, several other government-owned banks, including Bank of Baroda, Oriental Bank of Commerce and Corporation Bank, have reported fraud.
According to the bank union representatives, the current argument that over 20 PSBs is a large number runs contrary to the existence of 21 private sector banks, many of which are still on the fringes of the Indian finance even after remaining in operation for a considerable number of years.
In support of the argument against privatisation, analysts point to the worldwide experience of PSBs repeatedly becoming effective instruments to battle financial crises.
The most recent instance of this role played by state-run banks comes from the 2008 financial crisis in the US, which set off a global depression, when major private commercial and investment banks in developed markets on the verge of going bust had to be saved with public money.
The list of private banks that either failed, were distressed, or were merged since 2009, runs into many pages on the website of the US Federal Deposit and Insurance Corporation.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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