AIBEA & AIBOA To Observe “ANTI MERGER DAY’ on 26th August, 2014 we have our stated position that mergers and consolidation of our Banks are not at all warranted in our country. In a country, where more than 50 crores of people still do not have even a bank account, expanding our Banks to reach all of them is the main task. In achieving financial inclusion also, our Banks have a leading role to play and for that our Banks have to reach out to more and more people. Everyone knows that in India, banking has not saturated to warrant consolidation. We need huge expansion of banking sector and public sector banks can alone be the vanguard in the national task. The Government is also talking of merger of small banks to create big banks so that they will be strong. We know in western countries including in USA, the so called ‘big banks’ were the ones to face severe problems and Government had to bail them out at the cost of tax-payers. Big or small is not the issue, what we need is strong and vibrant banks which can serve the people effectively. There are also comments that some of the banks are weak and hence they have to be merged with some strong Bank. Should we not analyse why there is weakness in the Banks and what is responsible for the same ? All know that the real weakness in these Banks is the bulging bad loans. Can anyone believe that mergers will help in recovery of these bad loans ? If effective steps are taken to recover the bad loans, all the Banks will be strong enough and there is no need for mergers. Similarly, there are also frequent pronouncements that Associate Banks should be closed down and taken over by SBI. Associate Banks are doing very well and in all parameters, their performance is better than the SBI. In fact, it is because of the strangle-hold of SBI that the Associate Banks have not grown much. Associate Banks have their own historical evolution and geographical importance. There is no need to meddle with them. It is high time that the Associate Banks are de-linked from SBI and made independent Banks to flourish and progress. To convey our concerns, express our protests and focus our demands, let us observe 26th August, 2014 as ALL INDIA ANTI MERGER DAY as under: 15-09-2014 ALL INDIA DAY AGAINST SMALL PRIVATE BANKS 25-09-2014 ALL INDIA DAY AGAINST SALE OF BAD LOANS INSTEAD OF RECOVERY OF LOANS 15-10-2014 ALL INDIA DAY DEMANDING MERGER OF RRBs WITH SPONSOR BANKS
Posted on: Sat, 23 Aug 2014 04:04:39 +0000
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