Matter of grave concern: International finance capital 'onslaught' on Indian finance and banking

By Devidas Tuljapurkar* 

In recent years, there has been a concerning trend of increasing foreign control over Indian banks. It began with Laxmi Vilas Bank, which was acquired by Singapore-based DBS Group (Development Bank of Singapore). This was followed by the acquisition of Catholic Syrian Bank by the Canadian firm Fairfax. More recently, Yes Bank has seen a growing stake being taken over by Japan’s Sumitomo Mitsui Banking Corporation (SMBC), and now reports suggest that RBL Bank (formerly Ratnakar Bank Limited) is likely to be acquired by the United Arab Emirates’ (UAE) public sector lender, Emirates NBD (Emirates National Bank of Dubai).

This growing foreign presence in Indian banking is nothing short of an onslaught by international finance capital. What makes this development particularly troubling is the irony that it is unfolding under a government that often champions the cause of Atmanirbhar Bharat (Self-Reliant India) and Swadeshi (indigenous) values. Despite such rhetoric, the government appears to be facilitating this steady encroachment.

The proposed sale of IDBI Bank (Industrial Development Bank of India) further underscores this trend. As stated by the government, the privatization of IDBI Bank is expected to be completed by the end of this financial year. If the process goes through as planned, it will mark the first instance of a public sector bank being fully privatized—an unprecedented shift with far-reaching implications.

Banking is not just another industry; it is the very backbone of a nation’s economic infrastructure. Allowing critical banking institutions to fall into the hands of foreign entities poses a significant risk to India's financial sovereignty. Such a move could severely undermine the country's ability to independently manage its economic policy, especially in times of global uncertainty.

India’s independence is not merely a political concept; it must also extend to the economic and financial domains. Preserving the integrity and autonomy of our banking sector is essential to defending that independence. It is imperative that we reconsider the direction in which we are headed before it becomes too late to reverse course.

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*Chairman, RBL Bank Employees Union