THE IDEA OF RE-PRIVATIZATION OF PUBLIC SECTOR BANKS IN INDIA COULD END UP TO BE A DISASTER: A WORD OF CAUTION

 

THE IDEA OF RE-PRIVATIZATION OF PUBLIC
SECTOR BANKS IN INDIA COULD END UP
TO BE A DISASTER: A WORD OF CAUTION


I have been reading in the media that some Central Bankers or former Central Bankers have been publishing statements and reports for Re-Privatization of Public Sector Banks. They may have their reputation and credibility for their statements and ideas to be taken as a pinch of salt by some members of public, however the idea of Re-Privatization of Banks in the Indian context could be a disaster, a word of caution for those who may jump to grab such an idea floated in the media.  

It has been a fashion in contemporary times of India, that people who live, teach or work in America (USA) or elsewhere speak a lot and float ideas for operation of India or how will the Indian Republic will be run, which may or may not work in the context of the situation of India. Ultimately they don’t live in India, they have been away from India for long, they don’t see and feel the internal or hinterland of India and might not have seen the contemporary realities, they only do academic exercises or papers sitting in America and try to postulate theories and ideas for practice for Indian situations through their Spectacles based in America, that may not be beneficial for the people of India all the times, though a section of public may be subscribing to such ideas coming from America based intellectuals, may be of Indian Origin. In fact, such ideas have to be scrutinized and discounted before putting into application in the Indian context for its appropriate utility.

It is also interesting to observe that the same faces are saying in dual voices and tones in dual directions as it suits to them over time. Some times they say in favour and some times in against, that is quite intriguing and unfortunate. Just because, they get respect from some public of India, that does not mean what they say being based and living in America is panacea for the people for the Republic of India.

The Private Banks have conducted quite disastrously in some way or other in detriment to the National Interest of India over time. Whatever may be said, the Public Sector Banks have done more good for the Indian Economy than the Private Banks. The Private Banks have been efficient in accumulating and amassing wealth for a few and handful of individual persons in India or in external geography who are its investors or shareholder or beneficiaries and for a few and handful of its executives running them, other than that, the Private Banks have squeezed the common men and women of India by hook or by crook it goes without saying. Examples are plenty. A real life example as published in the public domain in media is, a Managing Director and CEO of Private Bank before his retirement, has en-cashed his accumulated shareholding in the Bank amounting to about            Rs 1000-1200 Crores in recent times. It means he as an individual has accumulated wealth of Rs 1000-1200 Crores out of Bank shares and his accumulated wealth that can come with his retirement benefits would also be additional. This kind of wealth accumulation for a Managing Director and CEO of a Public Sector Bank is un-heard.

What the common Indian public get from the Private Banks are; a lot of fraud of their account, hackling by the Contractors, Agents and Representatives of such banks for petty issues. A higher interest rate and penal interest rate for borrowings and not necessarily such higher interest rates for deposits.  They run contractual back offices who are more harmful than own employees. They can show eyes, push around common people and hackle them and their families for nominal matters. They can cozy with their rich friends and do anything, but harass ordinary citizens and send goons to their houses to intimidate them even for a motorcycle EMI is delayed even due to the hapless ordinary citizen breaking his leg and bed ridden due to a motor cycle accident. They can manipulate their figures and numbers to show a rosy picture and engage hawkish brokers to enhance their Share Price in Stock Exchanges to amass wealth for a few and handful of promoters, share holders or investors both domestic or external.

The Public Sector Banks are the common men’s and women’s banks working in India since 1969 when they were Nationalized. They have stood by the Nation and the People of the Republic of India in all weather situations, in good days and rainy days, and in war time and peace time of the Indian Nation. The common and ordinary public has a voice before the public sector banks but they can not raise voice before the Private Banks who are used to have their agents and contractors showing eyes to the common public. The idea of Re-privatization of Public Sector Banks is not acceptable and worth trashing.

Rather, some of the large Private Sector Banks deserve to be tamed by forcible Nationalization and merging of some public sector banks to make a robust banking infrastructure in India as financial back bone. Some of these Private Sector banks have become too fat by their unbridled activities and they deserve to be Nationalized and merged with some public sector banks in the National Benefit.

The idea of Re-Privatization of Public Sector Banks of India should be a still born baby, is not acceptable. If anyone would have good sense to suggest some large Private Sector Banks to be Nationalized and merged with some Public Sector Banks to build a robust banking infrastructure as financial back bone for the Nation would be welcome.

A word of caution for Re-Privatization of Public Sector Banks which could turnout as a Disaster in the context of India.


About the Author : Dr. Nimain Charan  Biswal is a B.Sc.(Agri. Science and Technology). M.B.A. and Ph.D.( Management Area ) by qualifications and he has 34+years of work experience in both  industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University ( with Resource Support of IIM-Ahmedabad ). Dr.Biswal is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organisations in Senior/Top Management Capacities. He is a management  expert, a prominent professional of India and known Internationally as well. He lives at Mumbai in India.


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