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

NYT seeks UN intervention, says: Modi turning autocratic, talks absurd on Kashmir

By Our Representative
In what appears to be a scathing reply to Prime Minister Narendra Modi’s much-publicized “New York Times” (NYT) article on Mahatma Gandhi titled “Why India and the World need Gandhi”, NYT’s powerful editorial board has said, Modi “didn’t address” the Kashmir issue in his United Nations (UN) speech, calling his assertion at the Houston rally a few days – that revoking the constitutional clause on Kashmiri autonomy meant “people there have got equal rights” with other Indians – “absurd”.

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Cess for Gujarat construction workers: Spending less than 10%; no 'direct help' to beneficiaries

By Our Representative
While the Gujarat government’s Building and Other Construction Workers Welfare Board, set up in 2004, as of March 31, 2019, has collected a total cess of Rs 2,097.62 crore from the the builders, it has spent less than 10% -- Rs 197.17 crore. And, as on May 31, 2019, the total cess collection has reached Rs 2,583.16 crore, said a statement issued by Bandhkam Majur Sagathan general secretary Vipul Pandya.
Pointing out that just about 6.5 lakh out of 20 lakh workers have been registered under the board, Pandya said, vis-à-vis other states, Gujarat ranks No 13th in the amount spent on the welfare of the construction workers, while 11th in the amount collected.
And while the builders are obliged to pay just about 1% of the total cost of their project, the calculation of the cess is flawed: It is Rs 3,000 per square yard; accordingly, Rs 30 per square yard is collected. “Had the cess been collected on the real construction cost, it would have been at least Rs 7,000 cr…

Why nobody objected to Gautam Gambhir, Sunny Deol in t-shirt, jean?: Activists

By Our Representative
Mimi Chakraborty and Nusrat Jahan’s excitement on their first day as MPs was overshadowed by a barrage of sexism over their ‘non- sanskari’ outfits, a group of civil society activists have said in a statement. According to Aarushi Nigam, Divya Kaushik, Riya Sharma, Ruman Ganguly, and Anulekha Agarwal, both Bengali actors and first-time MPs "were certainly excited to take them on when they posted pictures from their new workplace on social media."
Hit by misogynistic comments, the activists say, "Their choice of workwear – jeans and a white button-down shirt for Mimi, a wine-coloured peplum suit for Nusrat – was the first and last word on their political competence for many."
“You’re not on vacation”, “they have mistaken Parliament for Kolkata’s Nicco Park or City Centre”, “this is not a photo studio, this is a place where you should fight for people’s rights and legislate”, “keep some respect towards your Bengali society” were some of the &quo…

132 Gujarat citizens, including IIM-A faculty, others declare solidarity with Kashmiris

Counterview Desk
A week after it was floated, 132 activists, academics, students, artists and other concerned citizens of Gujarat, backed by 118 living in different parts of India and the world, have signed a "solidarity letter" supporting the people of Jammu and Kashmir (J&K), who, it claims, have been silenced and held captive in their own land. The signatories include faculty members and scholars of the prestigious Indian Institute of Management-Ahmedabad (IIM-A).

Amit Shah 'wrong': Lack of transparency characterized bank frauds, NPAs, jobs data

Counterview Desk
India's senior RTI activists Nikhil Dey, Anjali Bhardwaj, Venktesh Nayak, Rakesh Reddy Dubbudu, Dr. Shaikh Ghulam Rasool, Pankti Jog and Pradip Pradhan, who are attached with the National Campaign for Peoples' Right to Information (NCPRI), have said that Union home minister Amit Shah's claim that the Government of India is committed to transparency stands in sharp contrast to its actual actions.