Privatisation critical for cash starved public sector banks
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Even as the Union United Forum of Bank Unions (UFBU), an umbrella body of nine unions, decided to call for two-day strike later in the month opposing privatisation of state-owned lenders, several employees said that the unions need to be more constructive, especially at a time when many of them are in the red.</p>
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Several mid-level to senior officials said that instead of blind opposition, managements and unions need to thrash out a roadmap along with the government chalking out a smooth transition.</p>
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The roadmap to privatization of banks needs to clearly spell out the monetary and social package needs to be prepared which will suit the employees, insiders said.</p>
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Several state owned banks are already reeling under a pile of bad assets with decelerating profit margins and cash crunch. &ldquo;Amid this situation, it is quite natural that the government wants to exist the business. Strikes too have limited impact in today&rsquo;s day when most banking is technology-driven,&rdquo; a retired official said.</p>
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The National Organization of Bank Workers (NOBW), an affiliate of the Bharatiya Mazdoor Sangh has said that the need of the hour is to create a positive narrative while outlining the stringent measures required to protect employees&rsquo; interest.</p>
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Finance Minister Nirmala Sitharaman in the Union Budget 2021-22 announced privatization of two state owned banks and a general insurance company.</p>
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&ldquo;We are trying to create awareness. The unions have always opposed every move of the government but it is time now to work in a constructive manner so that employees do not suffer,&rdquo; Ashwani Rana, vice president, NOBW, told India Narrative.</p>
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A banking industry source said that public money cannot be directed towards supporting unviable banks for too long. &ldquo;Bold decisions pertaining to reform measures are the need of the hour. The government is determined to move forward,&rdquo; the source said.</p>
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The country&rsquo;s public sector banks, barring the biggies &ndash; the State Bank of India, Bank of Baroda and Punjab National Bank among a few others have been struggling in the last few years.</p>
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Besides, the public sector banks are in acute shortage of talent.</p>
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&ldquo;These banks fail to attract talent. There are no able officials. Recruitments in the country&rsquo;s government banks have slowed down drastically in the last five years,&rdquo; a public sector bank official said.</p>
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Meanwhile, insiders said that the Narendra Modi government, which has raised the pitch over &lsquo;good economics is good politics&rsquo; ethos, will stick to the prescription laid down in the Union Budget. Last week Prime Minister Modi also highlighted that the government has &ldquo;no business to be in business.&rdquo;</p>
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