Tuesday, November 25, 2008


Plea to nationalise private banks
Special Correspondent
‘Indian banking system among the best in the world’
‘Western countries now thinking of nationalising banks that India has done 39 years ago’
AIBEA has saved Indian banks from global meltdown, says its national joint secretary
KURNOOL: The All-India Bank Employees Association (AIBEA) has urged the government to initiate steps for nationalisation of leading private banks in the larger interests of depositors.
Mr. B.S. Rambabu, national joint secretary of the association, claimed the credit for insulating Indian banks from global meltdown saying the AIBEA was singularly responsible for halting privatisation process.
He said Indian banking system was considered one of the best in the world today because of its resilience. The western countries were thinking of nationalisation of banks today what India had accomplished 39 years ago.
He said because of government control, commercial banks were conducting direct business. Indian banks might be facing some problem on recovery front, but there was no threat to the security they obtained from the borrowers.
He said on the other hand, private banks channelized huge amounts through investment route, which turned out to be the source of misery. Since they did not have control of the government, nobody knew how much money they had invested in defunct overseas institutions. He justified the government inference in the private banks saying the interest of common man was involved.
When the Global Trust Bank collapsed, the Oriental Bank of Commerce came to its rescue since the capital involved was manageable. It would not be so if huge banks sunk.
As the banks mobilised their deposits from public, the government should ensure that the money was utilised for public welfare and growth of national economy. Only commercial banks could direct their funding to the sectors of national interest.Book defaulters
Mr. Rambabu mooted criminal action against the wilful defaulters and laws to restrict their entry to public institutions through elections.
A person who misused public money should not be allowed to lead public institutions. In many instances, the defaulters were leading a luxurious life by diverting the assets to binami holders

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