Banking operations in public sector banks, old generation private sector banks and regional rural banks across the country were hit on Tuesday as about 10 lakh employees went on a one-day strike to oppose, among others, amalgamation among public sector banks and their privatisation, and to demand tough measures against large loan defaulters.

The United Forum of Bank Unions, the umbrella union of trade unions, plans to intensify its agitation by calling for a two-day strike either in October or November if its concerns are not addressed, according to union representatives.

With the aforementioned banks accounting for about 75 per cent of the total banking business in the country, cheque-clearing operations were severely impacted. Besides, cash transactions could not be carried out as usual and government treasury transactions could not be put through as branches were closed down.

CH Venkatachalam, General Secretary, All India Bank Employees Association, said in most of the places, clearing operations, particularly outward clearing, were badly affected.

Normally, in the three clearing grids in Chennai, Mumbai and Delhi, on an average, about 40 lakh cheques and instruments worth about ₹20,000 crore are transacted per day.

“The government’s denial of adequate capital to public sector banks is creating conditions for privatisation. This would mean privatising the ₹80 lakh crore of common people’s money available in our banks.

“This is dangerous for the country and our people. Privatisation of banks would also result in denial of loans to priority sectors like agriculture, rural development, education, etc.,” he said.

Similarly, at a time when the country needs more banking services, the government is talking of consolidation, amalgamation and merger of banks, the trade union leader said, and added that bank mergers would result in closure of bank branches as is happening in SBI now after the merger of associate banks.

Loan defaulters Given that the banking industry is reeling under bad loans, S Nagarajan, General Secretary, All India Bank Officers’ Association, emphasised that the industry has to be saved from the clutches of loan defaulters.

Sanjay Manjrekar, General Secretary, Syndicate Bank Officers Association, said instead of hauling the large loan defaulters over the coals, the common depositor is being unfairly penalised by banks in the form of cuts in deposit rates and higher charges. The government should allow banks to take criminal action against the defaulters.

Pointing out that there are about 7,000 wilful defaulters, Venkatachalam felt that they should be termed as criminal offenders and tough criminal action taken. “But the government is suggesting litigation route/insolvency cases by which money due to the banks will not be recovered, rather there would be huge sacrifices and write-offs.

“In the last five years, from 2013 to 2017, banks have written off nearly ₹2.50 lakh crore of loans due from these defaulters. This is diversion of people’s money to benefit the rich people,” he said.

Related Topics