Move to privatise public sector banks will be opposed tooth and nail, says AINBOF

Any move to privatise public sector banks (PSBs) will be opposed "tooth and nail", the All India Nationalised Bank Officers Federation (AINBOF) asserted on Wednesday.

AINBOF general secretary Sanjay Das said bank nationalisation was the most successful and biggest economic reform in independent India and paved the way for the public sector banks to play a crucial role in the development of all sectors of the country.

With high unemployment, inflation and economic inequalities continuing, there is a need to have control on capital which can be done only through expansion of PSBs and not by handing over these precious assets to "crony capitalists", Das said on the occasion of 55th year of bank nationalisation in the country.

The PSBs promoted financial inclusion, mobilised savings and channeled funds to vital sectors of the economy like agriculture, SMEs, education and infrastructure, he said.

"The purpose of social control was to accomplish widest possible distribution of bank credit, prevent misuse of banking assets and direct greater volume of credit to priority sectors to promote economic development ... Any move to privatise PSBs will be opposed tooth and nail by us," Das said.

Since 1969, the year 14 banks were nationalised, there has been no record of public sector bank failures. On the contrary 38 private banks had failed, he said.

The PSBs had also implemented various government schemes for the benefit of the masses, he added.