Home > Archives (2006 on) > 2020 > On 51st Anniversary of Bank Nationalisation on 19th July 2020 - Demands of (...)
Mainstream, VOL LVIII No 31, New Delhi, July 18, 2020
On 51st Anniversary of Bank Nationalisation on 19th July 2020 - Demands of All India Bank Employees Association
Friday 17 July 2020
#socialtags[DOCUMENT]
ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522 Fax: 2535 8853 M- 984 00 899 20 Web: www.aibea.in
e mail chv.aibea[at]gmail.com 9840089920
PRESS RELEASE
14-7-2020
By C.H. VENKATACHALAM, GEN SECRETARY, ALL INDIA BANK EMPLOYEES ASSOCIATION
51ST ANNIVERSARY OF BANK NATIONALISATION ON 19TH JULY 2020
WE DEMAND
Strengthen Public Sector Banks
Stop Privatisation of Banks
Ensure recovery of Bad Loans
Increase interest rate on Deposits
AIBEA will release the list of Wilful Defaulters of bank loans
19th July is a very significant day in the chronicles of banking sector in our country. It was on this day, on the 19th July in the year 1969, 14 major private Banks were nationalised by the Government of India, from when these Banks started chartering a new path with social orientation. AIBEA played a leading role in championing the cause and demand for nationalisation of private Banks. There were continuous struggles for more than 20 years including strikes by bank employees demanding nationalisation of banks.
In those days, all Banks in our country were owned by powerful industrial houses, business houses and capitalist tycoons. They were using the Deposits of these Banks for their own industrial and business needs. They also were reluctant to open branches and extend banking service to the people at large. Loans were not being given to common people. In addition, hundreds of private banks were getting closed due to mismanagement by private managements and owners and the innocent people lost their precious savings.
Given the developing economic scenario, AIBEA demanded that private banks should be nationalised and these banks should play an important role in national development.
But AIBEA was not daunted and did not feel intimidated. AIBEA was clearly guided by the basic philosophy of the founding fathers that besides fighting for the betterment of the bank employees, AIBEA should also ensure that Banks help the common people at large, especially in a developing economic scenario after two hundred years of subjugation by the British imperialism.
Outside in the streets, bank employees were in the campaign and struggle. Inside the Parliament, Com. Prabhat Kar, the then General Secretary of AIBEA who was a Member of Parliament from 1957 to 1967, consistently took up the issue and mobilised political support.
The issue became a popular demand and in 1969, in the then prevailing political situation, at the cost of a vertical split and division in the Congress Party, Madam Indira Gandhi nationalised the major private Banks.
AIBEA became the champion because AIBEA was the only trade union which raised the issue, demanded, agitated and struggled for this cause.
Nationalisation of Banks has transformed the face of our Banks. It was class banking before and it became mass banking after nationalisation. Thousands of Bank branches were opened in the rural areas. Bank nationalisation brought safety and security for the savings of the people. Sectors which were neglected for lending loans became the priority sectors. Banks started giving loans to agriculture, employment generation, poverty reduction, rural development, health and education, small scale and medium industries, infrastructure, exports, etc. Public Sector Banks started making a big impact on the economic development of our country.
It is equally important to recall that bank nationalisation, which AIBEA achieved, also resulted in huge employment opportunities and lacs of educated young people got jobs in the Banks. Total number of employees were just around one lac in 1969 and today, we have nearly a million bank employees, all due to nationalisation of Banks. Nationalised Public Sector Banks became the engine for driving our country’s economic development. Our Banks proudly became nation-building institutions.
1969 | NOW | |
---|---|---|
No. of Branches | 8200 | 156,329 |
Branches in rural and semi urban areas | NIL | 95,252 |
Priority sector loans | NIL | 40 % |
Deposits | Loans | |
---|---|---|
15th Aug. 1947 | Rs 1019 crores | Rs 424 crores |
July 1969 | Rs 5,000 crores | Rs 3,500 crores |
Now in 2020 | Rs 138.50 lac crores | Rs 101.83 Lac crores |
But, sadly enough, in the name of banking sector reforms as dictated and desired by the IMF, World Bank, etc, and as being obediently pursued by the successive Governments, our public sector Banks are facing multiple challenges today. The present Government at the Centre is aggressively following the policies of privatisation and liberalisation of banking regulations.
Private corporates are the defaulters of huge loans but they are being given all concessions. This burden is put on the common people. To offset the loss of revenue on bad loans, interest rate on Deposits is reduced.
Today when our country and our economy are at the crossroads, our public sector Banks have a very significant role to play. They need to be strengthened, they need to be expanded and they should play a much greater role in shaping up a vibrant economy. But unfortunately, instead of strengthening our public sector banks and their social orientation, attempts are afoot to reverse the clock.
It is in this background that we shall celebrate and observe the 51st Anniversary of Bank Nationalisation on the 19th July, 2020.
From AIBEA, we have given the call to bank employees to observe the Bank Nationalisation Day with the following Demands:
Strengthen Public Sector Banks
Stop Privatisation of Banks
Ensure recovery of Bad Loans
Increase interest rate on Deposits
In the normal times, we would be undertaking full-scale programmes to celebrate the occasion but given the present situation where the whole country and our people are facing the health threat due to corona pandemics, and bank employees are attending Banks amidst difficulties, the following programmes have been decided upon:
National Webinar on 19th July, 2020 ( Sunday ) at 5-00 PM through AIBEA’s Facebook Page.
Release of the list of Wilful Defaulters of Banks.
Circulation of e-Leaflets/Pamphlets in regional languages.
Display of Posters at Branches
Mass Petitions to Prime Minister
Badge Wearing on 20-7-2020 (Monday)
C.H. VENKATACHALAM
GENERAL SECRETARY
YEAR | BAD LOANS WRITTEN OFF |
---|---|
2009 | 6,966 crores |
2010 | 11,185 crores |
2011 | 17,794 crores |
2012 | 15,551 crores |
2013 | 27,013 crores |
2014 | 32,595 crores |
2015 | 49,976 crores |
2016 | 59,400 crores |
2017 | 81,684 crores |
2018 | 1,28,230 crores |
2019 | 1,96,849 crores |
2009 TO 19 | =SUM(ABOVE) 6,27,243 crores |
RESOLUTIONS UNDER INSOLVANCY AND BANKRUPTCY CODE SO FAR
LOAN GIVEN TO |
Loan given by Banks | Resolved and settled at | Loss to the Bank | Concession & haircut |
Essar | 54,000 cr | 42,000 cr | 12,000 cr | 23 % |
Bhushan Steel | 57,505 cr | 35,571 cr | 21,934 cr | 38 % |
Jyothi Structures | 8,179 cr | 3,691 cr | 4,488 cr | 55 % |
Electrosteel Steels | 13,958 cr | 5,320 cr | 8,638 cr | 62 % |
Monnet Ispat | 11,478 cr | 2,892 cr | 8,586 cr | 75 % |
Alok Industry | 30,200 cr | 5,052 cr | 25,148 cr | 83 % |
In 6 accounts | 1,75,870 cr | 94,526 cr | 81,34 cr | 46 % |
PUBLIC SECTOR BANKS - SEE WHERE THE PROFITS GO
Year | Gross Operating Profit Before Provisions for Bad Loans | Provisions made for Bad Loans/NPAs | Published Net Profit |
---|---|---|---|
2008-09 | 45,494 Cr. | 11,121 Cr. | 34,373 Cr. |
2009-10 | 57,293 Cr. | 18,036 Cr. | 39,257 Cr. |
2010-11 | 74,731 Cr. | 29,830 Cr. | 44,901 Cr. |
2011-12 | 87,691 Cr. | 38,177 Cr. | 49,514 Cr. |
2012-13 | 93,684 Cr. | 43,102 Cr. | 50,582 Cr. |
2013-14 | 1,27,652 Cr. | 63,389 Cr. | 37,018 Cr. |
2014-15 | 1,37,817 Cr. | 76,837 Cr. | 37,540 Cr. |
2015-16 | 1,36,926 Cr. | 1,60,303 Cr. | - 17,993 Cr. LOSS |
2016-17 | 1,58,982 Cr. | 1,68,469 Cr. | - 11,388 Cr. LOSS |
2017-18 | 1,55,585 Cr. | 2,70,953 Cr. | - 85,371 Cr. LOSS |
2018-19 | 1,49,804 Cr | 2,16,410 Cr | - 66,606 cr LOSS |
Bad Loans Written-off in Public Sector Banks
Year | Amt Written Off | 2010 | 11,185 cr. |
---|---|---|---|
2001 | 5,555 cr. | 2011 | 17,794 cr. |
2002 | 6,428 cr. | 2012 | 15,551 cr. |
2003 | 9,448 cr. | 2013 | 27,013 cr. |
2004 | 11,308 cr. | 2014 | 32,595 cr. |
2005 | 8,048 cr. | 2015 | 49,976 cr. |
2006 | 8,799 cr. | 2016 | 59,400 cr. |
2007 | 9,189 cr. | 2017 | 81,684 cr. |
2008 | 8,019 cr. | 2018 | 1,28,230 cr. |
2009 | 6,966 cr. | 2019 | 1,96,849 cr. |