Skip to main content

Mergers to result in global banks? They would be worth $4 bn vs big banks' capital $70-80 bn

By Our Representative
Four officers’ unions, All India Bank Officer's Confederation (AIBOC), the All India Bank Officer's Association (AIBOA), the Indian National Bank Officer's Congress (INBOC) and the National Organization of Bank Officers (NOBO), have called for a strike on September 26 and 27 to protest against the merger of 10 state-run banks into four bigger banks, service charges imposed on the customers, demanding five working days a week, and scrapping of the New Pension Scheme.
Two employees’ unions -- All India Bank Employee’s Association (AIBEA) and Bank Employee’s Federation of India (BEFI) -- have called for a series of protest action including an all India strike on the October 22nd.
The Indian National Bank Employee’s Federation (INBEF) and the All India Trade Union Congress (AITUC) have also come out supporting the strike call given by the Officer’s Union. The unions have come out strongly against the merger of 10 banks into four and also demanded not to burden the people with service charges.
Meanwhile, several prominent citizens-- including Kavita Krishnan, All India Progressive Women's Association; Ashok Chaudhary, All India Union of Forest Working People, Madhuresh Kumar, National Alliance of People’s Movements; Himanshu Upadhyaya, faculty, Azim Premji University; Jammu Anand, Himanshu Takkar, South Asian Network for Dams, Rivers and People; Sreedar, Environics Trust; Leo Saldanha, Environment Social Group; Priya D, Centre for Financial Accountability; and Bharat Patel of the Machimar Adhikaar Sangharsh Sangathan, Gujarat -- have also welcomed the protest action.
In a statement, these individuals said, "The idea that bank mergers would result in big global banks is a fallacy, as even if all the banks are merged to form one bank its capital would be only close to $4 billion while the global big banks have a capital of over $70 to 80 billion. Hence, mergers are not for the benefits of banks or to increase the volume of credit (more number of loans) but only to increase the size of the credit (large loans) given to the corporate sector. At a time when the banks are facing loss due to non-performing assets (NPA), this move would only further the crisis in the near future."
Further, it said, "Bank charges now levied for each and every single transaction has only burdened the people and is also alienating them from the banks. The penalty collected for not maintaining minimum balance alone by public sector banks (PSBs) and four private banks is Rs 14,000 crore, the same for extra ATM (more than four times) transactions is Rs 4,144 crore. The service charges are nothing but a way to cover the loss made by corporate bad loans. Looting the people for the loss made by corporates should immediately be stopped."
The statement conrinued, "Bank unions have warned the government and RBI before too of its faulty policies in dealing with the NPA crisis. They had warned against restructuring and ever greening, the futility of IBC and resisted the Financial Resolution and Deposit Insurance Bill (FRDI) but neither the government nor the RBI paid head to it."
But today, it added, "The Reserve Bank of India (RBI) has discontinued all restructuring as they have only delayed the crisis without addressing it. The Insolvency and Bankruptcy Code (IBC), after two years has only given minimum returns to the banks but has been a colossal drain of the banks’ resources in the haircuts and provisions. Similarly, it was only after a strong push back from the people that the government withdrew the FRDI Bill. It would hence do good for the government to listen to unions and stop the mergers of the banks."
The statement demanded:
  • To make wilful default criminal offence
  • To put in place adequate due diligence for large scale loans
  • To include social and environmental safeguard policies for the investments of banks
  • Withdraw all bank charges on banking services

Comments

TRENDING

Top upper caste judges 'biased' towards Dalit colleagues: US Bar Association report

By Rajiv Shah  A high profile report prepared by the influential  American Bar Association (ABA) Center for Human Rights , taking note of the fact that “in the 70-year history of the Indian Republic, only six Dalit judges have been appointed to the Supreme Court”, has taken strong exception to what it calls “lack of representation of Dalits” in the legal profession and the judiciary.

Unlike other revolutionaries, Hindutva icon wrote 5 mercy petitions to British masters

By Shamsul Islam*  The Hindutva icon VD Savarkar of the RSS-BJP rulers of India submitted not one, two,or three but five mercy petitions to the British masters! Savarkarites argue: “There are no evidences to prove that Savarkar collaborated with the British for his release from jail. In fact, his appeal for release was a ruse. He was well aware of the political developments outside and wanted to be part of it. So he kept requesting for his release. But the British authorities did not trust him a bit” (YD Phadke, ‘A complex Hero’, "The Indian Expres"s, August 31, 2004)

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Whither SDG goal? India's maternal mortality rate fall target 5.5% per yr, actual 4.5%

By Srinivas Goli, Parul Puri* The maternal mortality ratio (number of maternal deaths per one lakh live births) is a key and sensitive parameter used by health policymakers to monitor maternal health conditions in particular and women's status in general in a country.

Fresh efforts to subsume Buddhism within Hindu fold 'undermining' Ambedkar

By Aviral Anand*  From Yeola in 1935, when Dr Ambedkar announced that he would not die a Hindu, to Nagpur in 1956 when he converted to Buddhism, is a considerable distance in time. But, there was in him a need to make a public announcement in 1935 about moving away from Hinduism. 

How green revolution led to 'deterioration' of Punjab economy, land, air and water

By Dr Gian Singh*  A recent research paper, based on a survey of 320 farming families in four districts of Punjab, has tried to show that high crop densities and the use of inputs have led to degradation of land, air, water and humans through a rich agricultural structure. Although mechanization has increased agricultural productivity, it has also caused environmental degradation.

Savarkar 'opposed' Bhagat Singh's, Netaji's dream of India, supported British war efforts

By Shamsul Islam* In a shocking development, the student wing of the RSS put the busts of martyrs Bhagat Singh and Subhash Chandra Bose with Savarkar's on one pedestal at the University of Delhi late in the night on August 20, 2019. Bhagat Singh sacrificed his life for a socialist-democratic-secular republic and Netaji raised Azad Hind Fauj (INA) consisting of people of all religions and regions for armed liberation of India.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Reverse progress in fight against hunger? 15.3% of India undernourished: GHI

By Harchand Ram*  Every year October 16 is observed as World Food Day to celebrate the date of the founding of the Food and Agriculture Organization (FAO) of the United Nations. In the year 2021, the theme for World Food Day is “Our actions are our Future-Better Production, better nutrition, a better environment, and a better life”.

Abysmal deficit of water, food waste recycle treatment 'impacting' Chennai life

By Simi Mehta*  We are living in a state where the most basic needs like food and water are not assured to the people residing in the urban areas, which account for the biggest sources of food and water wastage. Socio-economic inequality in society which is pervasive in urban areas is one of the main reasons for this.