Home India News Banking operations hit across the country: Union leader

Banking operations hit across the country: Union leader

Chennai : The nationwide strike in the banking and insurance sector on Wednesday has begun on a very encouraging note signifying total success, a top leader of the All India Bank Employees’ Association (AIEBA) said.

“The strike has started on an encouraging note across the country as per initial information we got. Employees of Reserve Bank of India (RBI), nationalised banks, old private sector banks, cooperative banks, regional rural banks are participating in the strike,” AIEBA general secretary C.H. Venkatachalam told IANS.

According to him, strike is a success in major cities like Mumbai, Delhi, Chennai and Kolkata.

Across the country around 500,000 bankers – workers and officers – would be participating in the strike. Around 75,000 branches will not work.

The strike was called in support of the 12-point charter of demands of the 10 Central Trade Unions.

The unions in the banking and insurance sectors are participating in the strike in support of the 12 point charter as well as pressing the issues in their sectors.

Complaining of increasing attacks on the rights and privileges of workers and concessions being extended to the employers, Venkatachalam said there are open attempts to amend labour laws in favour of the employers and to the detriment of the workers.

The neo-liberal economic policies are only aggravating the problems of the workers and common masses.

Venkatachalam said in the banking sector, there are continuous attempts to push through the reforms agenda aimed at privatisation of banks, consolidation and merger of banks and others.

“More and more private capital and foreign direct investments are being encouraged. Private sector companies are being given licences to begin banking business,” he said.

According to him, Regional Rural Banks are sought to be privatised and a bill has been passed in parliament despite protests from employee unions.

The real problem of increasing bad loans is not being effectively handled by the Government but on the other hand, crore of rupees are being written off from profits of banks, Venkatachalam said.

“Deliberate and willful default of bank loans should be termed as criminal offence and money recovered but no action is being taken on them,” he added.

“As on March 31, 2015, there are 7,035 cases of willful defaulters involving bad loans of Rs.58,792 crore.

“The bad loans in the Banks as on March 31, 2015, has risen to 2,97,000 crore in addition to another Rs.4,03,004 crore of bad loans of 530 corporate companies shown as rescheduled and restructured loans under CDR (corporate debt restructuring) scheme,” Venkatachalam said.

According to him bad loans struck up in top 30 borrowal accounts of public sector banks as on March 31, 2015, is Rs. 1,21,162 crore.

Unions in State Bank of India (SBI) and Indian Overseas Bank (IOB) are not participating in the strike.

“Perhaps it shows their imperial attitude,” a union official told IANS preferring anonymity and punning on SBI’s earlier name Imperial Bank.

“All the major recognised unions representing Class III and IV employees in Life Insurance Corporation of India (LIC) and four government owned non-life insurers are participating in the strike,” J.Gurumurthy, vice president, All India Insurance Employees Association (AIIEA) told IANS.