23/06/2021
Privatization of the PSU banks and its feasibility:
The government is planning to sell two public sector banks within the current financial year. As per news articles, Niti Aayog recommended names of IOB and CBI as the potential candidates for privatisation, though the names were not declared officially.
The media is talking about Banking reforms and Economic reforms, the stock market seems to be excited at the news; share prices of both the banks shoot up sharply at the news of privatisation. But what about the employees? Thousands of serving employees who competed with lakhs of candidates to crack the written examination and interview to secure a PSU job will suddenly land into a private job. These are the people who have the highest contribution in implementing all the Government schemes. Demonization would have been impossible without them. They give service to the poorest of the poor who are not even allowed to enter into the premises of the private banks. The reason behind privatisation as shown by the Finance Ministry is that, some PSU banks are underperforming continuously inspite of capital infusion by the government.
Now the question is, whether growth is only about making profits? Whether we can completely ignore the underprivileged class of our society and focus on building a Capitalist Economy? Can we grow as a nation in the true sense by depriving a class that comprises of more than 50 percent of the population of our country? Also one should note that PSU banks generate huge operating profit, they post losses only due to provision for NPA. Now any sensible person will understand that, the big corporate loans of thousands of crores which turned NPA were not sanctioned at branch discretion by the ground level employees who are going to be affected by privatization.
As of now names of only two banks have been in the news for privatization. But as announced by our honorable finance minister in Union Budget, only four PSUs will exist in strategic sectors; hence, we may expect more names in the near future. The question is whether privatization is feasible or not? First we should understand that PSU banks will lose huge business if privatized as general public like you and me who are concerned about the safety of their money, and rely on only PSU banks will shift their deposits to other PSU banks. Also after privatization if loans are distributed without any due diligence to the owner Corporate House, the safety of public money is questionable in the true sense.
As far as the future of the PSU bankers are concerned, I think they underestimate themselves a lot. They have enormous potential and they've proven it over and over again. 'PMJDY was launched by Prime Minister, Narendra Modi on 15th August 2014. Fifteen million bank accounts were opened on inauguration day, I.e. on 28.08.2014. The Guinness Book of World Records recognized this achievement, stating: "The most bank accounts opened in one week as a part of the financial inclusion campaign is 18,096,130 and was achieved by the Government of India from August 23 to 29, 2014".By 27th June 2018, over 318 million bank accounts were opened and over ₹792 billion (US$12 billion) were deposited under the scheme.' Source: Wikipedia. After that the bankers successfully implemented unnumbered Government schemes successfully. Their contribution in Demonetization is unforgettable. And when the whole Nation stayed safely at home, during the outbreak of COVID, the bankers relentlessly provided service to their countrymen risking their own lives.
Bankers are unstoppable; whether they are in public sector or in private sector, bankers will come out with flying colours. the corporates who'll buy the PSU banks have to understand that the organisation is nothing without its employees; employees are the biggest assets of an organisation; if their interests are not protected business will come to a standstill. The PSUs are pride of the nation, so are their employees. The Competent Authority has to decide whether selling of national assets will add to the glory of the nation or will cause downfall.
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