AIBEA flays splitting of CMD posts in banks The All-India Bank Employees Association has opposed the Central Government’s move to appoint separate Chairmen and Managing Directors for public sector banks in place of the current practice of the same person holding both the positions. “This is a ploy to bring in the ruling party’s henchmen to the banking sector and to accelerate the privatisation of public sector banks,” CH Venkatachalam, General Secretary of the association, told BusinessLine. “Such a move will also facilitate dovetailing the banks’ lending policies to the corporates’ wishes.” The Central Government had recently appointed MD-cum-CEOs for four banks and announced that separate Chairmen would be appointed soon. Venkatachalm said senior functionaries of corporate houses which are close to the BJP and the ruling establishment would be appointed as Chairmen and hence they would toe the line of the corporate interests as well as BJP’s interests. He feared that these Chairmen would recommend write-off of the huge pile of non-productive assets (bad loans) which are due from major industrial houses. Currently, bad loans amounting to lakhs of crores of rupees, were the biggest problems of the banks. He said splitting the post of Chairman and MD would add yet another layer of management, thus creating confusion and delay in decision-making. “ #AIBEA #BanUnion #PublicSectorBanks #PSB #BankReforms #CMD
Posted on: Wed, 07 Jan 2015 02:02:28 +0000
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