(PTI)
Employees unions of public sector banks have made a strong pitch for nationalisation of private sector lenders amid allegation of corporate governance lapses and concealing of information. Various allegations and imposition of fines for violation of guidelines raise a serious question mark on their ability to deal with the public money, unions said, adding that the recent events has also punctured their claims of being most efficient banks.
Many private sector banks which are pampered by the government are in crisis, and ICICI Bank and Axis Bank are the examples, All India Bank Officers’ Confederation (AIBOC) General Secretary D T Franco said in a statement. “So, it is high time, the Government of India and RBI intervene and nationalise the private sector banks so that the sector plays the vital role in commanding heights of the economy and there is growth in farm sector as well as employment,” AIBOC joint general secretary Ravinder Gupta said.
Surprisingly, most of the private sector banks are owned by foreign investors and they are reaping the benefits of high valuation and dividend yields, Gupta said, adding that the investors are taking away large chunk of profit, while public sector banks pay part of profit to the government as dividend, which is utilised for the development activities in the country.
