Union protests move on new-gen banks in Govt biz

Thiruvananthapuram, Oct 19:The State Committee of All-India Bank Officers’ Confederation (AIBOC) has urged the State Government to re-examine its decision to allow new-generation private banks to handle Government funds, including disbursement of salary to employees.

According to Mr Abraham Shaji John, State Secretary, AIBOC, public sector banks have been implementing all Government-sponsored poverty alleviation schemes.

PRIORITY LENDING

On the other hand, public sector banks had teamed up with old generation private banks and cooperative banks to carry out priority sector lending.

Out of the total amount of about Rs 6,000 crore outstanding under the education loan portfolio in the State, the share of all new generation banks adds up to no more than Rs 4 crore.

Mr John said that these banks have also been least involved in the implementation of Kudumbasree loans and financial inclusion initiatives.

All of them put together have around 250 branches only all over the State, which itself indicates the limited reach and role in development banking.

WEAKENS CASE

The decision to give a chunk of Government business to them will considerably weaken the business case of the public sector and cooperative banks.

The apparent bias towards new generation banks in this manner is unbecoming on the part of the State Government, Mr John said.

In the circumstances, the State Committee of AIBOC would request the State Government to withdraw the decision immediately.