The central government's decision to privatize two public sector banks (PSBs) and strategic disinvestment of the IDBI Bank has met resistance from the All India Bank Officers' Association (AIBOA).
The AIBOA has appealed to the President of India, Ram Nath Kovind, to advise the council of ministers led by Prime Minister Narendra Modi to rescind the proposed moves.
AIBOA general secretary S Nagarajan has written in the letter to the President that nationalized banks have contributed consistently to the country's growth and remain critical in all developmental activities.
"The Public Sector Banks (PSBs) have stood the test of time….the wealth created in the nation thorough Public Sector Undertakings and also PSBs need to be protected and promoted," Nagarajan mentioned in the letter.
He added, "The rescue of the private sector banks from the woes of mismanagement and mal-administration was only through merger with PSBs."
The AIBOA general secretary also claimed that policy paralysis in terms of recovery had led IDBI Bank to a situation where it hosts bad loans amounting to Rs 36,000 crore currently.
He accused successive central governments of implementing a recovery mechanism that prevents borrowers from paying back the availed loans.
Nagarajan further emphasized that PSBs comprehensively supported the country's economic development in implementing the government's schemes and instructions for the people's benefit.
He even said that the PSBs have taken over private sector banks in the last 25 years to protect the savings of ordinary people.
The Central Bank of India and the Indian Overseas Bank are considered by the central government for privatization purposes this year, Businessline .