Millennium Post

Bank union slams Govt plot to cut stake in PSBs

Opposing the Government’s plan to reduce its stake to 52 per cent in PSU banks, All India Bank Officers’ Confederation on Saturday said such steps would ultimately benefit private players.

Confederation General Secretary Harvinder Singh said that a reduction in Government share in profit-making public sector banks would also lead to sharp rise in non-performing assets (NPAs).

‘Privatisation of profit and nationalisation of losses appears to be the policy of the Government which is neglecting our pending demands. It is also considering reducing stakes in profit-making state run banks that will be not a good decision,’ Singh told reporters. ‘The Government should arrange capital for these banks instead of reducing it,’ he said.

Minister of State for Finance Jayant Sinha told the Lok Sabha on Friday that the Government may bring down its equity in state-owned banks as it would reduce the budgetary need for capitalisation of PSU banks.
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