Private bank officers as chiefs of public sector banks – Bank employees oppose Centre’s move
The bank employees association has expressed its opposition to the Centre’s decision to appoint top officials from private banks as chief officers of nationalized banks.
According to a press release from CH Venkathachalam, General Secretary of the All India Bank Employees Association, “The Minister of Finance had announced that he was going to implement some reforms in the banking sectors, especially the public sector banks. As per these proposed reforms, high-level officials from the private banks can now be appointed as top officials of public sector banks. Such an act could badly affect the functioning of public sector banks. Public sector banks are the biggest asset managers of the general population. the deposits made by the general public in these nationalized banks amount to Rs.66 lakh crores.
Public sector banks are not obsessed with profits. They function with social welfare as one of their ideologies. If high-level officials from private banks are going to be appointed in top posts, the public sector banks are bound to lose their focus. It also denies the chances of promotion for officers in these banks.
As of March 31 2015, bad debts of public sector banks have increased to a staggering Rs.2.97 lakh crores. Bad debts to corporate houses have reached Rs.4.03 lakh crores. The bad debts from 30 public sector bank accounts amount to Rs.1.12 lakh crores. Venkatachalam has announced that strikes will be conducted all over the country to oppose the Centre’s move.
Earlier, the Minister of Finance, Arun Jaitley had announced a 7 point plan, including the appointment of bank heads and the Bank Board Bureau, ways to handle the finance and loan crisis, powers to the banks, and regulation and reforms of the bank activities. It was named Mission Indradhanush.
The names of top leaders of five nationalized banks were announced. Secretary of the Department of Finance Services, Hasmukh Adiya made these announcements. Ravi Venkateshan (the former head of Microsoft India) was made the chairman of Bank of Baroda, which is a public sector bank. The chairmen of the other six public sector banks will be announced in the next six months.
In addition to the five public sector banks, the centre has also named the CEOs of two public sector banks. For the first time in the history of the country, top officials of private sector banks have been appointed to these posts.