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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



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:

e mail chv.aibea[at]         9840089920






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)



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



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 %


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.
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