‘Any move to reduce govt stake in 12 public sector banks will be resisted’

New Delhi: The Congress on Friday said any move to bring down the Union government’s stake in 12 public sector banks to less than 51 per cent would continue to be resisted forcefully both in Parliament and outside.

The party asserted that the mergers in the public sector banking industry in the last seven years have been broadly accepted only because the Union government’s share was not to be reduced to below 51 per cent.

Congress general secretary in-charge communications Jairam Ramesh recalled that on this day 55 years ago, then prime minister Indira Gandhi had moved decisively to nationalise 14 banks and opened a whole new chapter in India’s economic history.

Bank nationalisation had profound impacts on lending for agriculture, rural development, and other priority sectors of the economy, the Congress leader said.

He asserted that public sector institutions have served the country well in times of global financial crisis.

They have built an impressive pool of managerial expertise, he added.

Over the past seven years, there have been mergers in the public sector banking industry, Ramesh pointed out

“United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank. Syndicate Bank has been made part of Canara Bank. Allahabad Bank merged with Indian Bank. Union Bank of India has absorbed Andhra Bank and Corporation Bank. Vijaya Bank and Dena Bank have been taken over by the Bank of Baroda. State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad and Bharatiya Mahila Bank have been acquired by the State Bank of India,” he said.