UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

[PM]

 Dear Friends,

 UNITED FORUM OF BANK UNIONS vide their Cir.No.2013/6 dt 08.03.2013 have directed all constituent unions/Members to hold demonstrations in protest against Govt's. New Banking Licence Policy and Licence to Corporate Houses on 18^th March 2013, in front of Banks and RBI in all important cities.

Copy of UFBU Cir.is reproduced hereunder for information:-

                                          “From the UFBU we have been demanding a vibrant banking sector in our country in order to subserve the socio-economic needs and keeping the basic national economic development in mind.  While the public sector banks in our country, for the past more than five decades, have immensely contributed to these social objectives, the Government has been following the policy of liberalisastion and banking reforms for the past two decades.  Because of this, the Government has been encouraging private sector banking and diluting the role of public sector banks in many ways.  Even the equity capital contribution of the Government in the PSBs have been brought down.  Recently, even the voting rights of private capital investors in PSBs have been increased 10 times from 1% to 10%.  For the public sector Banks, the Government is toying with the idea of consolidation and mergers but in the case of private banks and foreign banks, they talk of further expansion and encouragement. 

As a part of these reform measures, recently, at the behest of the Government, the RBI has announced their new Bank Licensing Policy by which the private industrial, business and corporate houses will be permitted to open their own Banks.

Eligibility norms:  Any private sector company including Non-Banking Finance Companies can open a Bank.  Total capital requirement would be Rs. 500 crores out of which, the promoter company need to bring only Rs. 200 crores which can be further reduced to Rs. 75 crores after 5 years.  Foreign capital will be allowed upto 49% in these Banks which can be increased to 74% after 5 years.

In a country where we find that 100 top billionaires have a minimum wealth of Rs. 5,000 crores each and with a total wealth of Rs. 12,50,000 crores ( 250 billion $), we can imagine the havoc they will play in the banking sector if they are allowed to enter banking business.  These were the people who were owning banks in our country and who abused and misused the people’s savings for their own interests.  That is why banks were nationalized in national interest. It is tragic that the government is now reversing the clock by giving them license to start their Banks.

The world over the experience is very bitter and most of the cases there has been a conflict of interest and mix up of people’s savings with their own business needs.  

Many sensible Economists have been pointing out the risks and dangers of corporates doing banking business and yet the Government is insensitive and is bent upon handing over banking license to them.  Thus the flood-gate is sought to be opened.

Clearly, the move is not in the interest of our economy.  The need is to strengthen the public sector banks and not boost private corporates into the banking sector. In consistence with our avowed policies and stand-points, UFBU opposes this unwarranted move of the Government.

We need to express our protest and opposition to this move.  Accordingly all our units are advised to under the following initial programme:

HOLDING MASIVE DEMONSTRATIONS AND RALLIES IN ALL STATE CAPITALS AND OTHER IMPORTANT CITIES IN FRONT OF BANKS PREFERABLY BEFORE THE PREMISES OF RESERVE BANK OF INDIA WHEREVER POSSIBLE.

THE PROGRAMME SHOULD BE ORGANISED JOINTLY BY THE LOCAL UNITS OF UFBU.

THE DEMONSTRATION SHOULD BE HELD ON 18^TH MARCH, 2013.

Comrades, banks deal with people’s money.  It should be for the benefit of the common masses and not for private profiteering by the corporates.  Rise in protest.  Further programmes will be decided by the UFBU from its next meeting.

P.K.Sarkar

Convenor"

[L S RAMAN]

    The UPA Govt appears to be in favour of Private sector Banks against the Earlier doctrine of  providing Banking facilities, at  the door steps of the rural and urban poor through large no of PSBS.On one side the govt wants to encourage Financial Inclusion as against the counter policy of licensing private sector Banks with no concern for Priority sector lending and to weaken the the strength PSBS.Thanks to similar indiscipline in Banking the western countries have witnessed many Bank Failures.Further failure appear to be imminent
    Before licencing more Private Sector Banks The GOI and RBI should ensure level playing field in the area of risk associated with P.S.lending so that the private Banks also confirm to the P.S.Lending parameters laid down.including lending under DRI.and sharing the national responsibilities in deployment of credit under the lead bank Scheme and Finanancial Inclusion for poverty reduction.
Raman L.S..

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[harinarayana sarma nandivada]

The move  by UFBU deserves every  support but why not the views be aired in public through all media as it is the only way of enlightening the public on the wrong policies being pursued by the Govt. and their impact on the nation's economy. It is  also desirable that  UFBU enlists the support of all trade unions of the country in taking the matter to masses in order to garner their support.  The wrong doings of the government need to be exposed through all possible means repeatedly which only can deter the government from taking any hasty step.  Individual efforts will not suffice at all. N.Harinarayana Sarma VRS Retiree 2001 from Andhra Bank Hyderabad --- On Sat, 9/3/13, PM <moha...@gmail.com> wrote:

--

[yogeshwar sharma]

There  is no logic in opposing entry of private banks. Whether PSBs are scared of competition. Look at the history , PSBs became active and improved the service after entry of some the private banks like ICICI , HDFC , Axis. Some of these banks are bigger than most of the public sector banks. There was a time when the word public sector had become  a taboo and gave an impression of inefficiency. In what way banks like YES Bank , Kotak Mahindra Bank affected PS banks. RBI has put the condition of 1 opening certain percentage of branches in unbanked areas and 2 meeting targets for priority sector lending.  It is high time when should stop opposing every new thing being introduced. Let public sector banks try to match the private sector banks in all the areas of efficiency.
 

---

Date: Sat, 9 Mar 2013 20:44:04 -0800
From: nhns...@yahoo.com
Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

[perumal maruthu]

Dear Sir,

Healthy Competition from private banks or a healthy competition amongst the PSU banks is always good for the customers/consumers.

Unfortunately, private Banks are pampered by the Gov't and by the Corporates; they need not care for the Rural poor, they do not have the burden of serving Pensioners,they need not even issue/update Pass Books despite repeated directive from RBI, they can stipulate Minimum balance of Rs10000/ etc. In short, they render "CLASS Banking" whereas PSU Banks are several disadvantages for their growth: most of them are often HEADLESS, policy paralysis, blatant political interference in dispensing Credit as in King Fisher or Deccan Chronicle ,opening unremunerative A/Cs with ZERO balance and so on.

No doubt, the upstarts HDFC/ICICI/Kotak always pose  challenges to the PSBs of HUNDRED years standing! But let us not forget what happened to GLOBAL TRUST BANK, TIMES BANK, Bank of Rajasthan etc!

M.Perumal

From: yogeshwar sharma <yoge...@hotmail.com>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Sent: Sunday, 10 March 2013 1:07 PM
Subject: RE: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

There  is no logic in opposing entry of private banks. Whether PSBs are scared of competition. Look at the history , PSBs became active and improved the service after entry of some the private banks like ICICI , HDFC , Axis. Some of these banks are bigger than most of the public sector banks. There was a time when the word public sector had become  a taboo and gave an impression of inefficiency. In what way banks like YES Bank , Kotak Mahindra Bank affected PS banks. RBI has put the condition of 1 opening certain percentage of branches in unbanked areas and 2 meeting targets for priority sector lending.  It is high time when should stop opposing every new thing being introduced. Let public sector banks try to match the private sector banks in all the areas of efficiency. 

Date: Sat, 9 Mar 2013 20:44:04 -0800From: nhns...@yahoo.comSubject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICYTo: bankpe...@googlegroups.com

The move  by UFBU deserves every  support but why not the views be aired in public through all media as it is the only way of enlightening the public on the wrong policies being pursued by the Govt. and their impact on the nation's economy. It is  also desirable that  UFBU enlists the support of all trade unions of the country in taking the matter to masses in order to garner their support.  The wrong doings of the government need to be exposed through all possible means repeatedly which only can deter the government from taking any hasty step.  Individual efforts will not suffice at all. N.Harinarayana Sarma VRS Retiree 2001 from Andhra Bank

Hyderabad--- On Sat, 9/3/13, PM <moha...@gmail.com> wrote: From: PM <moha...@gmail.com> Subject: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY To: bankpe...@googlegroups.com Date: Saturday, 9 March, 2013, 2:17 PM  Dear Friends,  UNITED FORUM OF BANK UNIONS vide their Cir.No.2013/6 dt 08.03.2013 have directed all constituent unions/Members to hold demonstrations in protest against Govt's. New Banking Licence Policy and Licence to Corporate Houses on 18th March 2013, in front of Banks and RBI in all important cities. Copy of UFBU Cir.is reproduced hereunder for information:-                                           “From the UFBU we have been demanding a vibrant banking sector in our country in order to subserve the socio-economic needs and keeping the basic national economic development in mind.  While the public sector banks in our country, for the past more than five decades, have immensely contributed to these social objectives, the Government has been following the policy of liberalisastion and banking reforms for the past two decades.  Because of this, the Government has been encouraging private sector banking and diluting the role of public sector banks in many ways.  Even the equity capital contribution of the Government in the PSBs have been brought down.  Recently, even the voting rights of private capital investors in PSBs have been increased 10 times from 1% to 10%.  For the public sector Banks, the Government is toying with the idea of consolidation and mergers but in the case of private banks and foreign banks, they talk of further expansion and encouragement.  As a part of these reform measures, recently, at the behest of the Government, the RBI has announced their new Bank Licensing Policy by which the private industrial, business and corporate houses will be permitted to open their own Banks. Eligibility norms:  Any private sector company including Non-Banking Finance Companies can open a Bank.  Total capital requirement would be Rs. 500 crores out of which, the promoter company need to bring only Rs. 200 crores which can be further reduced to Rs. 75 crores after 5 years.  Foreign capital will be allowed upto 49% in these Banks which can be increased to 74% after 5 years. In a country where we find that 100 top billionaires have a minimum wealth of Rs. 5,000 crores each and with a total wealth of Rs. 12,50,000 crores ( 250 billion $), we can imagine the havoc they will play in the banking sector if they are allowed to enter banking business.  These were the people who were owning banks in our country and who abused and misused the people’s savings for their own interests.  That is why banks were nationalized in national interest. It is tragic that the government is now reversing the clock by giving them license to start their Banks. The world over the experience is very bitter and most of the cases there has been a conflict of interest and mix up of people’s savings with their own business needs.  Many sensible Economists have been pointing out the risks and dangers of corporates doing banking business and yet the Government is insensitive and is bent upon handing over banking license to them.  Thus the flood-gate is sought to be opened. Clearly, the move is not in the interest of our economy.  The need is to strengthen the public sector banks and not boost private corporates into the banking sector. In consistence with our avowed policies and stand-points, UFBU opposes this unwarranted move of the Government. We need to express our protest and opposition to this move.  Accordingly all our units are advised to under the following initial programme: HOLDING MASIVE DEMONSTRATIONS AND RALLIES IN ALL STATE CAPITALS AND OTHER IMPORTANT CITIES IN FRONT OF BANKS PREFERABLY BEFORE THE PREMISES OF RESERVE BANK OF INDIA WHEREVER POSSIBLE. THE PROGRAMME SHOULD BE ORGANISED JOINTLY BY THE LOCAL UNITS OF UFBU. THE DEMONSTRATION SHOULD BE HELD ON 18TH MARCH, 2013. Comrades, banks deal with people’s money.  It should be for the benefit of the common masses and not for private profiteering by the corporates.  Rise in protest.  Further programmes will be decided by the UFBU from its next meeting. P.K.Sarkar Convenor" -- Visit our blog site http:://bankpensioner.blogspot.com --- You received this message because you are subscribed to the Google Groups "bankpensioner" group. To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com. Visit this group at http://groups.google.com/group/bankpensioner?hl=und. For more options, visit https://groups.google.com/groups/opt_out.

-- Visit our blog site http:://bankpensioner.blogspot.com --- You received this message because you are subscribed to the Google Groups "bankpensioner" group. To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com. Visit this group at http://groups.google.com/group/bankpensioner?hl=und. For more options, visit https://groups.google.com/groups/opt_out.    

[saradindu basu]

Almost 106 banks were liquidated during the period 1954 to 1959 among which 73 banks went into voluntary liquidation and 33 into compulsory liquidation.  Privare sector banks like ICICI,HDFC and Axis are not doing mass banking at all. In my days, in my bank's rural branches, customers were allowed to operate SB A/cs with a minimum balance of Rs500/-.Let us go and check-what are minimum balances required for SB A/cs in such private banks. Private sector banks are being favoured by the authorities for reasons best known to them. They have been allowed very convenient way of priority sector lending. What to talk of rural areas, they hardly operate in semi-urban stations. Their efficiency can be judged only when they start disbursing small priority sector loans like nationalised banks  and start operating in rural areas.It is true that with the arrival of blue-eyed private sector banks where minimum balance criteria are changed without notices to customers , nationalised banks have started paying attention towards hitherto neglected areas like renovation of branches and customer services.Country's largest private sector lender, ICICI Bank' London subsidiary had 57 million Euro (about Rs 375 crore) exposure in the Lehman Brothers which went bankrupt. Should we close our eyes and ears?
 
--Saradindu Basu,
  Greater Noida.
 
 
 
 
 

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From: yoge...@hotmail.com
To: bankpe...@googlegroups.com
Subject: RE: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY
Date: Sun, 10 Mar 2013 13:07:17 +0530

[L S RAMAN]

The basic logic in the issue involved is uniformity in policies and opportunities in Banking operatiions between Public Sector and private Sector Banks.Too many Banks with limited resources would make the system unviable apart from the resultant indiscipline loss of control increase in NPAs and failure.Macro level and micro level indepth studies are required to assess the need for further Banks  before opening of more Banks.Such decisions are to be supported by by facts and figures and should not be based on arbitrary assessmen

[PM]

Dear Friends,

                       The entry of few Private Banks to banking sector is not the issue. The back ground and purpose of allowing entry to corporates to start new private banks is to be thought about.

                       When we look back India had good number of private banks during 50's- which were 430 in numbers. It was considered that these banks were controlled by business houses and thus failed in catering to the credit needs of poor sections such as cottage / village industry, farmers, craft men, etc On failure of these commercial banks in meeting the social objectives in tune with Govt planning/policy,and helping the government in attaining these objectives,the government decided to nationalize 14 major commercial banks in 1969.

                        Govt had few objectives behind the above decision,such as social welfare,priority sector lending,controlling the private monopoly,expansion of banking in unbanked areas without urban-rural imbalance and developing banking habits among citizen.To great extend PSBs could cater the needs of common man so far.

                            At present we have 49 banks (27 PSBs.22 Private Banks apart from foreign banks) in the country.It is also true that at the global ranking our banks are far behind.So far Govt.said the size is the matter and merger and consolidation is the way to achieve the same.In a such a scenario why these new private banks.Is it necessary now ?

In 1993, when RBI issued guidelines on new Banks, 10 new banks were set up in the private sector and another two in second phase in 2001.

Out of the four banks promoted by individuals in 1993, only one has survived with muted growth. One bank(Global Trust Bank ) has been compulsorily merged with a nationalized bank(OBC) due to erosion of networth on account of large capital market exposure.

The other two banks( Times Bank & Centurian bank) have voluntarily amalgamated with other private sector banks over a period of 10 to 13 years due to the decisions of the majority shareholders arising out of poor governance and lack of financial strength.

It is true that new generation private banks have edge over old private sector banks.Despite RBI's guidelines on Agri/Pri.sector lending ,what is the contributions of new generation banks under this area?

If financial inclusion and reaching out the poor to provide basic banking facility is the main concern of Govt,public sector banks can fulfill the objectives very well rather than experimenting with new entities.The performance of PSBs,under priority sector lending during post nationalisation period is proved beyond doubt.

Aim may be to improve efficiency and productivity but in reality,in a competitive environment , unhealthy offers may come up to attract funds,which may result in rise in cost of funds, and in order to boost profits risky areas and avenues may be selected for disposal of credit. Chances for deviations in laid down norms will also take place ultimately to contribute to NPAs,as we have seen in the past.

Since it is public money there should be social objectives and common man's need to get priority instead of increased profits to corporates.

We have to learn lessons from the last global financial crisis. Instead of strengthening the PSBs, Govt's move to bring in corporates to set up banks is reversal of its policies.

[girish dora]

Leave aside our pending issues.What you say is right.But simultaneously we should not forget that private sector Banks are a necessary evil.In the late nineties what was the condition of the PSB,these were all facing Unionisim & the ambience was of least covern.With the entry of these pvt banks 

staff started feeling threatened & from Just banking & deposit growth,the PSB started working for Profits & things changed for the better.But again as it is the circle has taken 360 turn,now Government does not want to grow.

Same applies to BSNL,AIR INDIA,INDIAN AIRLINES.The entry of pvt airlines brought awareness in AIR INDIA & IA  & BSNL but slowly slowly these are now dying their natural deaths.Govt machinery is just ensuring it & keeps it moving with lubrication from Pvt sectors.

One side it tries to reduce subsidy burden other side it keeps giving free bees by way of Free Laptops to students,loan waiver,electricity bill waiver,free LPG cylinders etc etc.The list is endless.All that the ordinary man can do is to prey to all mighty God to save The country from the clutches of nexus between politicians & babus.

Girish K Dora

EX PNB 

---

From: saradindu basu <saradin...@hotmail.com>
To: bankpe...@googlegroups.com
Sent: Monday, 11 March 2013 12:49 AM

[Veeraswami V]

To our knowledge no bank went into liquidation in the last 50 years due tight control by RBI.

New banking policy stipulates certain number of rural branches. It also bars private banks from giving loans to the promoters. The priority sector lending target is also a must for new private banks.the minimum balance is now insisted even in PSBs.

Regarding icici banks exposure to Lehman brothers, it happens in international banking. It never affected the customer or an SB account holder in any way. If so what about the crores of rupees outstanding advances of PSBs?  Can we close our eyes to big advances like one given, by psbs to King Fisher Airlines?

Why people go to private sector banks? Why they don't want PSBs? We have to popularize PSBs, instead of objecting private banks.

Thanks to the arrival of private banks, PSBs have " started paying attention to neglected areas like renovation of branches and customer services". 

Instead opposing private banks just for sake of opposing we should see why they do better.

If post office have given better service and modernised earlier,like Singapore, no one would have come to banks. We have to exist.

Further for competing in international arena, banks need huge capital, which government cannot provide.

Let us welcome private banks and prove we are better then them.
Veeraswami V

Sent from my iPad 

[perumal maruthu]

Thank you sir for your spirited defence of PSBs by re-capturing the pre-Nationalization era of Banking Vis a Vis the post-Nationalization achievements!

M.Perumal

From: PM <moha...@gmail.com>
To: bankpe...@googlegroups.com

--

[Veeraswami V]

Well said, mr Girish Dora

Veeraswami V

Sent from my iPad 

[Veeraswami V]

Nice to read Mr Mohan's mail. But 2013 is not 1969. In the last 50 years there have been no big bank failures.the government has never started a bank, like other industries, and run, but only Nationalised well run banks. They Nationalised only 20 top banks, due to financial reasons. Your own statistics of there are 27 PSBs and 22 private banks only. In 1969 when banks were Nationalised we thought of social banking. Now where is social banking even in PSBs? 

All PSB vie with each other to show profit. They give big loans to big parties without care. Just take the instance of King Fisher. If we accuse private sector of giving loand to big parties what these PSBs do? PSB waste money on unviable loans like King Fisher or Air India. Why should we, the public, bear the burden?

I was in a PSB. We all know the state of affairs and advances. We also know how many crores of bad advances and writing off. All these after nationalisation. We do not care what happens in private bank. Their losses borne by share holders. PSB loss or write off Bourne by general public.

The new rules provide restrictions on borrowaals by promoters. Social obligations and priority lendings are insisted. Further new private banks offer employment opportunity. Why should we stand against them.

I agree government should treat both private and PSBs equally, increase control.

Regarding customer service, you know how private banks excell. Without good service no one will go to private bank.

Let us leave it to public let them choose the best.

Let PSBs prove they are better then private banks, without idle boasting s.

Let us be realistic and support government move, without prejudice.

Veeraswami V

Sent from my iPad 

[Veeraswami V]

In India, after nationalisation, the banks started giving loans to various categories, as per government directives. Each time the government changes, the new government wants to overtake the previous one and started creating new type of loans like DRI@4%pa. Except the loans granted against, gold most of the loans, I can say more then 50%, went bad. Forgetting it is public money, banks in order to meet the target of the government made innumerable loans. At some point of time, the a policy for writing off of loans started, and huge amounts were treated as bad and subsequently written off.

Veeraswami V

Sent from my iPad 

[saradindu basu]

I remember names of a few north-based banks e.g,Punjab and Kashmir Bank, National Bank of Lahore,Lakshmi Commercial Bank, Traders Bank,Bank of Rajasthan, Bareilly Corporation Bank which had to be sent to "moratorium" and subsequently merged with one or other stronger banks.Though unfortunate, all these happened during last 50 years. Policies regarding opening of rural branches and target/sub-target for PS advances are at least 30 years old but unfortunately "elite" private sector banks have been provided comfortable ladder to escape stringency. While working as  Co-ordinator in 2 districts and one sub-division, I had seen that while representatives of PSBs were being rebuked by the authorities for non-fulfillment target/sub-target of PS advances, but there was no such rebuke for "elite" private sector banks. All these are personal experience of my time.
 
As our country is definitely part of international banking,entire credit for withstanding recent global financial meltdown goes to RBI. Lehman Bothers incident, though unfortunate, is an eye-opener atleast for me as I believe in the dictum- morning shows the day. I agree that we should never close our eyes towards KFA like incidents.
 
It's a fact that a certain class like to do banking with "elite" private sector banks and for that they must be having reasons. I agree that we should not blindly oppose private sector banks as because, I believe, they are also contributing to our economy. I completly agree that we have to popularise at least our own PSBs. I personally can't tolerate any defamation of my dear Bank vis-a-vis "elite" private sector banks. I know that many don't like this attitude of mine.I also believe that for so-called "poor services" in PSBs of our time, we can't eascape our responsibility. It was we who used to provide services and not the banner of the institution.  
 
Though I may not be around in this world to see but I pray to Almighty to bestow my countrymen enjoyment of standard of living and paying capacity for all these services available in countries like Singapore. 
 
--Saradindu Basu,
  Greater Noida.  

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Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

From: veera...@yahoo.com
Date: Mon, 11 Mar 2013 18:19:09 +0530
To: bankpe...@googlegroups.com

[PM]

Dear Friends,

                    Comparative study on merits and demerits on functioning of PSBs Vs Private sector Banks is not the issue now.

                    Let Public Sector Banks and Private sector Banks (Old and New Generation) co- exist in the country and extend all possible assistance to society under the laid down norms and policies of the Govt for the national development and economic growth.

                  No body is forcing the people to go to PSBs or Private sector banks at present.Surely it is left to individual choice. 'Service' alone is not the criteria in selecting any branch for banking by the people.What “service” a farmer expects from banks,except timely assistance for his agricultural loans.If a small trader/

common man has no access to banks on account of stipulation of higher minimum balances in SB ,surely it is a disadvantage .

                            Here the pertinent point is on issuing fresh licenses to corporates to start banks by RBI at the instance of Ministry of Finance/Govt of India.The govt 's

move is against what it preached and practiced hitherto.The policy of Govt. to weaken the PSBs( for that matter PSUs also) by encouraging corporates

is opposed by people of the country.

                 As on 31^st march 2012 Public Sector Banks have 70314 branches of which good number of branches are in unbanked areas. Old Private sector Banks have 5610 Brs. and new generation banks have 8258 Branches(most of them are in Metro/Urban areas.)

                    It is noted that opening of 25% of its branches in unbanked rural centers (population upto 9,999 as per 2001 census)is to be done to cope with the objective of financial inclusion,

and also compliance with CRR, SLR, Priority Sector Advances stipulations, etc.,to be made.Also note that,  time will be given to the new banks for achieving the objectives.

                    It is a well established fact that Public Sector Banks have done well so far in implementing the RBI/Govt policies and guidelines in true spirit and in future also it can cater the need of people in much greater way. PSBs could with stand the global crisis on its inherent strength and regulators watchful eye, and proper control.As such issuing new Bank licences to Corporates in the name of financial inclusion have no justification.

                                       Technological advantage has helped PSBs customers in all areas of operation. SBI is allowing to open SB account online.Other Nationalised banks are also in forefront in effectively carrying out online transactions of customers.

                                In the case of bank failures,we need not go beyond 50 years.Good number of Private banks have shown weakness,few others have failed and some of them placed under Moratorium- all in recent years.Thanks to close surveillance and timely interference of our Regulator.

During Pre-reform period(prior 1991) 55 banks were merged as per RBI's advice and initiative.

                                        Post reform period also witnessed such mergers which was favored by Govt.of India. Benaras State Bank was merged with BOB in 2002 and Global Trust Bank was merged with OBC in 2004..Some other private banks were also merged with private banks .An 107 old private bank which was placed under moratorium was merged with PNB in 2003. Thus RBI safe guarded the interest of depositors/employees. PSBs could save such banks that time due to inherent strength.

The policy of the Govt. in weakening the PSBs is opposed by all.

On Saturday, March 9, 2013 9:17:27 AM UTC-5, PM wrote:

[perumal maruthu]

Thank you sir for throwing more light on "why we oppose the Govt's UNJUSTIFIABLE tilted policy of encouraging corporate elite new Banks"!

Regarding compliance of Priority Sector Lending, the Elite pvt Banks never bothered about to fulfill RBI/Gov't directives. They were paying up the penalties for non-compliance. Only after making "Credit to Housing Sector" as Priority Advance, these Cosmetic Banks could comply with. But,  other than Housing, they never bother about other segments of Priority Sector. They concentrate only on profit-oriented consumer financing and for inculcating the pernicious "Card Culture"!

M.Perumal

From: PM <moha...@gmail.com>
To: bankpe...@googlegroups.com

--

[manoj kumar majumdar]

I appreciate your effort to promote a healthy debate on the subject of Govt's initiative to expand banking in the private sector and issuing further licenses for opening of private Banks. The debate reflects an idea that the retirees are not confined to the narrow setting of their economic demands only; on the contrary, they have a broader social view and are capable of contributing to the society through promoting debates and discourses on issues of national interest,
More than four decades have passed since nationalisation of the major Banks took place. In any country Banks are the engine of national economic growth and advancement. These major Banks had the net work of branches through out length and breadth of the country. So, to achieve national goal it was imperative to nationalize the major Banks. Besides, it was the era of socialist idealism. Nationalization, growth of public sector was the creed and private or foreign capital was anathema.
Now, we have to look back and analyze the gains and achievements vis-a-vis failings and drawbacks. It is true that there has been tremendous expansion of banking services to every corner of the country and services have reached to the poor and neglected sector of the society. But it is not sufficient for a country with population of 1.2 billion. Banking is a business proposition. In a competitive environment Banks cannot survive without making profit. To keep a competitive edge, Banks must modernize operation, gain efficiency. In this regard PSU Banks are lagging behind the new age private Banks and foreign Banks. This can be tested through day to day experience.  Standard of service in Banks like, Axis Bank, ICICI Bank or HDFC Bank is far superior to that of PSU Banks.
Gone are the days of radicalism. Idea of socialism is undergoing transformation after collapse of socialist bloc. Public sector is no longer expanding and private capital is longer a detested thing.
So, we the retired Bankers should forget our radical past and welcome the policy of issuing banking license to the private sector with a rider that there should be firm control over their operation. Private Banks must participate in social lending to priority sector and rural sector.
    : Manoj Kumar Majumdar Retired (VRS) Sr Manager, PNB, Calcutta.

[L S RAMAN]

Policy conflicts would ultimately spoil the system. there fore the long term policies should not be subjected to basic structural changes affecting growth and stability of the economy.in the name of reforms.Country can serve only under an able and efficient system of Public sector Banking poised towards poverty reduction and inclusive economic growth. Private Sector would take the economy to pre 1969 days facilitating mobilisation of peoples saving for vested and selfish interest of favoured few .
RamanL.S.

--

[perumal maruthu]

Dear Sri Basu sir,

Just now I recived a meesage from a Former ED of a Nationalised Bank.

 

"

Today a private Vedic channel has exposed three private banks have been helping in concealing black money of their clients in particularly putting the same in insurance :MF products. The banks have of course as expected denied and assured enquiry.Looks like that the culture of these banks is to violate the KYC norms wi...th impunity as this has been shown across branches.Prima facie reports look correct.There appears to be 1.complete lack of sensitivity to following rules of KYC.2.large targets to employees /incentives to employees to several benefits if ins/MF targets are reached.Fortunately PSBs are not involved as yet.But banks need to look at particularly the insurance MF KYC as well since insurance coy may throw the ball in bank court since they would claim the customer came through the bank.One interesting thing I observed today that stock market had all these banks stock up at close.Surprising.I think RBI should take serious view.Of course this type of incident will support the argument of many who are not happy with private banks being allowed entry."

 

Someone is in the last few days repeatedly batting for the 'New Elite Pvt Banks" but willfully forgetting their dark acts including Money Laundering! Below, you can find the News report:

 

ICICI Bank, HDFC Bank, Axis Bank under money laundering accusations

"Imaginative in their range and brazen in their approach!"

India's top private sector lenders ICICI Bank Ltd, HDFC Bank Ltd and Axis Bank Ltd said they were investigating allegations of widespread money laundering practices at their branches.

The shares of the banks fell briefly on Thursday after the independent investigative journalist, Aniruddha Bahal, made the accusations in a news conference televised by a local TV station in the morning.

Bahal, founder and editor-in-chief of Indian news and opinion website Cobrapost.com, said he had collected hundreds of hours of video recordings from "dozens and dozens" of bank branches across the country. The article said branches across all the three banks suggested laundering methods that were "imaginative in their range and brazen in their approach.

" ICICI Bank told Reuters that it was "deeply concerned" about the accusations.

 

"Any deviation is viewed very seriously and stringent action is taken both at an organizational and employee level,"  HDFC bank said in a statement.

 

Axis Bank also said it would investigate. (FE)

 

I do not know if the Gentleman who is continously deriding the PSBs and praising the "ELITE NEW PVT" Banks really knows or not that MONEY LAUNDERING is an anti-people, anti-social and ANTI_GOVERNMENT Activity!

M.Perumal

Canara Bank Pensioner

From: saradindu basu <saradin...@hotmail.com>
To: bankpe...@googlegroups.com

Sent: Wednesday, 13 March 2013 10:33 AM
Subject: RE: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

I remember names of a few north-based banks e.g,Punjab and Kashmir Bank, National Bank of Lahore,Lakshmi Commercial Bank, Traders Bank,Bank of Rajasthan, Bareilly Corporation Bank which had to be sent to "moratorium" and subsequently merged with one or other stronger banks.Though unfortunate, all these happened during last 50 years. Policies regarding opening of rural branches and target/sub-target for PS advances are at least 30 years old but unfortunately "elite" private sector banks have been provided comfortable ladder to escape stringency. While working as  Co-ordinator in 2 districts and one sub-division, I had seen that while representatives of PSBs were being rebuked by the authorities for non-fulfillment target/sub-target of PS advances, but there was no such rebuke for "elite" private sector banks. All these are personal experience of my time.   As our country is definitely part of international banking,entire credit for withstanding recent global financial meltdown goes to RBI. Lehman Bothers incident, though unfortunate, is an eye-opener atleast for me as I believe in the dictum- morning shows the day. I agree that we should never close our eyes towards KFA like incidents.   It's a fact that a certain class like to do banking with "elite" private sector banks and for that they must be having reasons. I agree that we should not blindly oppose private sector banks as because, I believe, they are also contributing to our economy. I completly agree that we have to popularise at least our own PSBs. I personally can't tolerate any defamation of my dear Bank vis-a-vis "elite" private sector banks. I know that many don't like this attitude of mine.I also believe that for so-called "poor services" in PSBs of our time, we can't eascape our responsibility. It was we who used to provide services and not the banner of the institution.     Though I may not be around in this world to see but I pray to Almighty to bestow my countrymen enjoyment of standard of living and paying capacity for all these services available in countries like Singapore.    --Saradindu Basu,   Greater Noida.  

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICYFrom: veera...@yahoo.comDate: Mon, 11 Mar 2013 18:19:09 +0530To: bankpe...@googlegroups.com

To our knowledge no bank went into liquidation in the last 50 years due tight control by RBI.

New banking policy stipulates certain number of rural branches. It also bars private banks from giving loans to the promoters. The priority sector lending target is also a must for new private banks.the minimum balance is now insisted even in PSBs.

Regarding icici banks exposure to Lehman brothers, it happens in international banking. It never affected the customer or an SB account holder in any way. If so what about the crores of rupees outstanding advances of PSBs?  Can we close our eyes to big advances like one given, by psbs to King Fisher Airlines?

Why people go to private sector banks? Why they don't want PSBs? We have to popularize PSBs, instead of objecting private banks.

Thanks to the arrival of private banks, PSBs have " started paying attention to neglected areas like renovation of branches and customer services". 

Instead opposing private banks just for sake of opposing we should see why they do better.

If post office have given better service and modernised earlier,like Singapore, no one would have come to banks. We have to exist.

Further for competing in international arena, banks need huge capital, which government cannot provide.

Let us welcome private banks and prove we are better then them.
Veeraswami V

Sent from my iPad 

On 11-Mar-2013, at 12:49 AM, saradindu basu <saradin...@hotmail.com> wrote:

Almost 106 banks were liquidated during the period 1954 to 1959 among which 73 banks went into voluntary liquidation and 33 into compulsory liquidation.  Privare sector banks like ICICI,HDFC and Axis are not doing mass banking at all. In my days, in my bank's rural branches, customers were allowed to operate SB A/cs with a minimum balance of Rs500/-.Let us go and check-what are minimum balances required for SB A/cs in such private banks. Private sector banks are being favoured by the authorities for reasons best known to them. They have been allowed very convenient way of priority sector lending. What to talk of rural areas, they hardly operate in semi-urban stations. Their efficiency can be judged only when they start disbursing small priority sector loans like nationalised banks  and start operating in rural areas.It is true that with the arrival of blue-eyed private sector banks where minimum balance criteria are changed without notices to customers , nationalised banks have started paying attention towards hitherto neglected areas like renovation of branches and customer services.Country's largest private sector lender, ICICI Bank' London subsidiary had 57 million Euro (about Rs 375 crore) exposure in the Lehman Brothers which went bankrupt. Should we close our eyes and ears? --Saradindu Basu,  Greater Noida.     

From: yoge...@hotmail.comTo: bankpe...@googlegroups.comSubject: RE: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICYDate: Sun, 10 Mar 2013 13:07:17 +0530

There  is no logic in opposing entry of private banks. Whether PSBs are scared of competition. Look at the history , PSBs became active and improved the service after entry of some the private banks like ICICI , HDFC , Axis. Some of these banks are bigger than most of the public sector banks. There was a time when the word public sector had become  a taboo and gave an impression of inefficiency. In what way banks like YES Bank , Kotak Mahindra Bank affected PS banks. RBI has put the condition of 1 opening certain percentage of branches in unbanked areas and 2 meeting targets for priority sector lending.  It is high time when should stop opposing every new thing being introduced. Let public sector banks try to match the private sector banks in all the areas of efficiency.

Date: Sat, 9 Mar 2013 20:44:04 -0800From: nhns...@yahoo.comSubject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICYTo: bankpe...@googlegroups.com

The move  by UFBU deserves every  support but why not the views be aired in public through all media as it is the only way of enlightening the public on the wrong policies being pursued by the Govt. and their impact on the nation's economy. It is  also desirable that  UFBU enlists the support of all trade unions of the country in taking the matter to masses in order to garner their support.  The wrong doings of the government need to be exposed through all possible means repeatedly which only can deter the government from taking any hasty step.  Individual efforts will not suffice at all. N.Harinarayana Sarma VRS Retiree 2001 from Andhra Bank

Hyderabad--- On Sat, 9/3/13, PM <moha...@gmail.com> wrote:

From: PM <moha...@gmail.com> Subject: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY To: bankpe...@googlegroups.com Date: Saturday, 9 March, 2013, 2:17 PM

Dear Friends, UNITED FORUM OF BANK UNIONS vide their Cir.No.2013/6 dt 08.03.2013 have directed all constituent unions/Members to hold demonstrations in protest against Govt's. New Banking Licence Policy and Licence to Corporate Houses on 18th March 2013, in front of Banks and RBI in all important cities.Copy of UFBU Cir.is reproduced hereunder for information:-                                          “From the UFBU we have been demanding a vibrant banking sector in our country in order to subserve the socio-economic needs and keeping the basic national economic development in mind.  While the public sector banks in our country, for the past more than five decades, have immensely contributed to these social objectives, the Government has been following the policy of liberalisastion and banking reforms for the past two decades.  Because of this, the Government has been encouraging private sector banking and diluting the role of public sector banks in many ways.  Even the equity capital contribution of the Government in the PSBs have been brought down.  Recently, even the voting rights of private capital investors in PSBs have been increased 10 times from 1% to 10%.  For the public sector Banks, the Government is toying with the idea of consolidation and mergers but in the case of private banks and foreign banks, they talk of further expansion and encouragement.  As a part of these reform measures, recently, at the behest of the Government, the RBI has announced their new Bank Licensing Policy by which the private industrial, business and corporate houses will be permitted to open their own Banks.Eligibility norms:  Any private sector company including Non-Banking Finance Companies can open a Bank.  Total capital requirement would be Rs. 500 crores out of which, the promoter company need to bring only Rs. 200 crores which can be further reduced to Rs. 75 crores after 5 years.  Foreign capital will be allowed upto 49% in these Banks which can be increased to 74% after 5 years. In a country where we find that 100 top billionaires have a minimum wealth of Rs. 5,000 crores each and with a total wealth of Rs. 12,50,000 crores ( 250 billion $), we can imagine the havoc they will play in the banking sector if they are allowed to enter banking business.  These were the people who were owning banks in our country and who abused and misused the people’s savings for their own interests.  That is why banks were nationalized in national interest. It is tragic that the government is now reversing the clock by giving them license to start their Banks.The world over the experience is very bitter and most of the cases there has been a conflict of interest and mix up of people’s savings with their own business needs.  Many sensible Economists have been pointing out the risks and dangers of corporates doing banking business and yet the Government is insensitive and is bent upon handing over banking license to them.  Thus the flood-gate is sought to be opened.Clearly, the move is not in the interest of our economy.  The need is to strengthen the public sector banks and not boost private corporates into the banking sector. In consistence with our avowed policies and stand-points, UFBU opposes this unwarranted move of the Government.We need to express our protest and opposition to this move.  Accordingly all our units are advised to under the following initial programme:HOLDING MASIVE DEMONSTRATIONS AND RALLIES IN ALL STATE CAPITALS AND OTHER IMPORTANT CITIES IN FRONT OF BANKS PREFERABLY BEFORE THE PREMISES OF RESERVE BANK OF INDIA WHEREVER POSSIBLE.THE PROGRAMME SHOULD BE ORGANISED JOINTLY BY THE LOCAL UNITS OF UFBU.

THE DEMONSTRATION SHOULD BE HELD ON 18TH MARCH, 2013.

Comrades, banks deal with people’s money.  It should be for the benefit of the common masses and not for private profiteering by the corporates.  Rise in protest.  Further programmes will be decided by the UFBU from its next meeting.P.K.SarkarConvenor"-- Visit our blog site http:://bankpensioner.blogspot.com--- You received this message because you are subscribed to the Google Groups "bankpensioner" group.To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.Visit this group at http://groups.google.com/group/bankpensioner?hl=und.For more options, visit https://groups.google.com/groups/opt_out.

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[Narayana Melkote]

Thank you Mr.Mohandas Rao and Mr.Perumal for all the mails you have been writing in this blog!   It seems you are the only members in the group to have understood the difficulties being faced by the members who are all senior citizens in reading the letters in the blog.   Your letters are not only interesting but make us read them very comfortably.  The types are large enough to the eyes of senior citizen members and we have never felt our eyes strained or reading difficult.   I request all the writer members emulate Mr.Rao and Mr.Perumal while writing letters !

Narayana Melkote

---

From: perumal maruthu <perumal...@yahoo.co.in>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Sent: Thursday, 14 March 2013 4:04 AM
Subject: Re: bankpensioner Re: UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

[mohan p]

Dear Sri.Perumal Maruthu,

                                          Thanks for the information.This is the reality in case of existing 'Elite Pvt.Banks". Situation may not be different once the corporates set up  new banks as per Govt's policy.

[C P V Nair]

Sorry Sir, you seem to have forgotten yet another imporatant name- C N Prasad.He is a veteran and devoted worker for the welfare of the retirees.The credit of VRS persons' victory in KHC case mainly goes to him.

 

 

warm reg

 

 

 

CPVNAIR

[Veeraswami V]

Sir

First of all I thank you, for posting your mails in bold fonts, which is very convenient to most of us elders, who are members of this group.

I as a retired officer of PSB, love my bank and appreciate certain services rendered by PSBs in rural areas and in priority sector lending. But at the same time I also appreciate the superb services given by private banks, which sadly lags in PSBs. In my opinion both PSBs and private banks should co exist competing with each other, there by improve their quality.

I too saw the news about three private banks today. I never say that is right. I just wanted to comment after full details come out. Can we blame all private banks on the whole, if one incident happens? What is the role of RBI and its inspectors in this case? How come all these, if it is such a big fraud, escaped RBI control? Before blaming let us get full details. I also want to know any other case a bank was taken over by Government or license cancelled, due to any such frauds?

Any accountability fixed on any one in RBI, any time?

There are numerous rules and regulations issued by RBI from time to time, and we all know, lot of banks do not follow them. Recently I asked about an RBI instruction regarding wait list for lockers and no bank has followed and no inspector has pointed out. So let us wait and see.

I feel government and RBI should tighten the control.

Your statement " Someone is in the last few days repeatedly batting for the 'New Elite Pvt Banks" but willfully forgetting their dark acts including Money Laundering" 

I am surprised to see you have generalized all private banks are after" dark acts". 

With proper control, both private and PSBs can co exist. PSBs need competition and banks need  more control. We should demand more control and checks so nothing untoward happens.

When we have agreed to private airlines, corporate hospitals, private TV broad casters, private telecom why should we oppose private banks? The government is using private couriers instead of postal system.

Please sir, I am not supporting private banks, but PSBs need competition to improve.

Regards

Veeraswami V

Sent from my iPad 

[Veeraswami V]

If one person is a thief in a city, we cannot brand every one as thief

Veeraswami V

Sent from my iPad 

[L S RAMAN]

The real colour of private Sector Banking has been adequately been  exposed in time when the GOI and RBI are considering proposals for licencing more Banks in Private Sector.Those gentlemen who wanted healthy competion should realise thatr the PSBS do not seek competition in money laundering activities.Let us hope that this news would be an eye opener to the authorities concerned.
Raman.L.S.

[perumal maruthu]

Dear Sir,

Within minutes of the cobrapost.com flashed this revelation to the world, the perturbed FM contacted the Chairmen of the three Banks to issue statements denying the REPORT and he summoned a Press/Media conference to pre-empt the moves of RBI/Tax Authorities by saying "TOO EARLY TO JUMP TO CONCLUSION". This is the most potent way of dithering on the charges and presumably an attempt to bail out the accused banks! Given such circumstances, the FM ought to have assured the Press/Media that 'a fair and free enquiry will be ordered and if any VIOLATION of the RULE/LAW of the Land comes to light, we shall not allow the concerned persons go unpunished'. Instead, he harped on the denial mode!

Now pl read what Times of India says in this regard:

GROUND REALITY

Banks deliberately violated provisions of IT Act:

“The evidence is graphic, crystal-clear and clinching,” the site(cobraspot.com) said. “The investigation finds the banks and their managements systematically and deliberately violating several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money laundering Act (PMLA) with utter disregard to consequences, driven by their desire to boost cheap deposits and thereby increasing their profits".

  “We talk about people stashing ill-gotten money in tax havens like Switzerland. But the fact is Switzerlands are here in India. The investigation showed that the money laundering services are “being openly offered to even walk-in customers who wish to launder their illicit money,”.

BLACK AND WHITE 3 private sector banks, HDFC, ICICI & Axis, accused of money laundering. Sting ops show number of bank execs offering to turn black money into white by using the banking system.

 10 SHARP PRACTICES 1 Put huge amounts of cash in insurance products, gold 2 Open fake account in order to route cash into investment schemes 3 Split money into tranches to evade detection 4 Use ‘benami’accounts to convert black money 5 Use accounts of other clients to channelize black money into system for a fee 6 Make demand drafts to facilitate investment without it showing up in the client’s account 7 Open multiple accounts and close them to facilitate investment of black money 8 Invest black money in multiple instruments in different names 9 Allot large lockers for safekeeping of cash 10 Help transfer black money abroad through non-resident external/ nonresident ordinary account.(ToI dt 15/3/13)

M.Perumal 

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[Narayana Melkote]

Dear Mr.Nair,

     I totally agree with you and I must write that I am an ardent fan of Mr.Prasad as I always look forward to his qualitative writeups which have a deffinite focus on the matters discussed in the blog.   I must admit that Mr. Prasad has clarified many doubts raised by me in the quickest possible time and has surprised me!   Therefore there is no two opinion.   My suggestion to members is only to make letters make easy reading.   This is the issue!   Anyway, my apologies to you and Mr.Prasad if my mail has offended!   Thanks for your quick and open reaction!

NarayanaMelkote

---

From: C P V Nair <cpvnai...@gmail.com>
To: bankpe...@googlegroups.com
Cc: Narayana Melkote <naray...@yahoo.com>
Sent: Friday, 15 March 2013 12:18 AM

[mohan p]

Dear Friends,

                             Our FM is more eager to say to media that recent reports on involvement of three new generation banks in money laundering are not correct.Without any investigation how it can be said.Let the regulator investigate and report what is going on.(We know nothing will come out )                               The same FM is instrumental in withdrawing the Banking Cash Transaction Tax in 2009 just before elections,though he has introduced it earlier.Reason-Politicians were not in favour of such tax.If that system were continued, huge cash transactions would not have been so easy.

                              Our political leaderships is not ready to learn lessons from the history instead,they are further paving way for the corporates to play with peoples money by issuing fresh licenses to new banks!

                  There are laid down norms and guidelines,for functioning of PSBs as well as Private Sector Banks.No body is above the rules and regulations of the country.

                Domestic banks have to lend minimum 40% of their total loans to priority sector, which includes loans to agriculture and allied activities, small-scale industries, poultry and other core economic activities in rural areas, including loans to microfinance companies. For foreign banks, it is 32% of net bank credit.

             For issue of new bank licenses to corporates also the above condition is applicable.Unfortunately our New Generation Banks, have not gone in tune with RBI guidelines in past also as per reports available.

            In the matter of violations of RBI guidelines,these new generation banks-HDFC,ICICIand AXIS bank-are coming in the news not first time.

            In 2011,RBI had fined HDFC,ICICI and AXIS bank for violating its guidelines on derivatives. As per RBI,the offences range from selling unsuitable products to corporates, selling products without verifying the underlying exposure and selling derivatives to companies that do not have risk management practices in place. RBI fined the banks involved including foreign banks with Rs.5 to Rs 15 lakhs.This is the maximum penalty that the RBI can levy under provisions of the Banking Regulation Act.

             Again ,in March 2012, RBI during its inspection of these banks' books, found that they have provided funds to those who trade in commodities which does not fall under the definition of priority sector.

            Thus RBI has rejected total Loans more than Rs.5000 crores,granted to commodity traders ,who are not farmers, wrongly classified under Pri.sector by HDFC Bank,ICICI Bank and Axis Bank.Still there are lot of such instances.Let it be there.Despite the violations and payment of huge fines,banks used to state that they are following RBI guidelines!

             Every one who looks through the past history will surely oppose the Govts.move in issuing licenses to coporates to set up banks. It may not be for national development/economic growth.

[Veeraswami V]

Mistakes and frauds happen both in private sector and PSBs. Just because it happened we cannot be against private sector. It means the regulations and supervision lags. Why it takes a video journalist to bring this out? Why RBI has not found mistake? What were they doing. Inspectors are posted as punishment postings. Most comes as inspectors without proper knowledge. Recruit more and more CAs. Instead, branding entire private sector as bad is wrong.

Recent report of CAG has pointed out frauds in loan waiver schemes. We all remember the Security scam, Harshad Mehtha case, where lot of PSBs were involved. Can we say all PSBs are cheats? Never.

Or the haphazard manner in which various loans were distributed by PSBs like DRI loans and agri loans during 70s. Or loans taken for buying tractor, where the same tractor was shown for different Loans.. Or well digging loans. All these were written off. Some went to court. All these loans were given by PSBs on political pressure. I know a bank which gave loan for making brick, the place where they dig becomes pond to fish form, and for that fishery loan...entire loan went bad.

Although banks were Nationalised with good intention every thing misused.

Can we say all PSBs bad?

Co exist with private sector, support the Government, that is good for all.

In the modern world we have to change according to time. We once opposed computerization, what we do now? Roads are built, airports built, maintained, airlines fly, TV. Broad cast, postal every thing is done by private sector. Even life insurance.

We are not competent, since we served only public sector. Go to any private bank and see the service. You will never dream in PSBs.

Let the public decide who survives in this competitive world. 

Veeraswami V

Sent from my iPad 

[perumal maruthu]

Dear Mr Veeraswami,

It is unfortunate that you try to shift the blame on Regulators and try to bail out the disgraced Banks. It is also more painful to read your generalisations and unwarranted and uncharitable remarks on PSU Banks. You have conveniently forgotten CVC investigating hundreds of cases against PSB Officials every year. The reported malpractices/illegal acts were done "DELIBERATELY" by these Banks. I quote the report of the Times of India.

GROUND REALITY

Banks deliberately violated provisions of IT Act:

“The evidence is graphic, crystal-clear and clinching,” the site(cobraspot.com) said. “The investigation finds the banks and their managements systematically and deliberately violating several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money laundering Act (PMLA) with utter disregard to consequences, driven by their desire to boost cheap deposits and thereby increasing their profits".

Sri P Mohan has posted an excellent message on why the Gov't should need restraint inpermitting the pvt new Banks."Every one who looks through the past history will surely oppose the Govts.move in issuing licenses to coporates to set up banks. It may not be for national development/economic growth."

 

M.Perumal

 

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[Srinivasa Murti Devulapalli]

Our Finance Minister has tacitly confirmed that he is the proxy to the culprits in Money Laundering - Be it the institutions or individuals. Powerful political lobbying is behind this action of the FM.

D S MURTI

[Veeraswami V]

Mr perumal

I too read Times of India.

I never try to disgrace PSU banks, but express my views on what happens really. Who am I to bail out any one? If they have committed frauds they have to be punished, for which an enquiry Is already underway, both internal as well as government agencies.

Yes malpractices are done deliberately and not by accidents or mistakes and whoever done that must be punished.

I still maintain if the regulations are framed and followed strictly these frauds could have been avoided. Every bank, both private and public sector, are inspected regularly by various authorities. If these frauds have been going on for long involving huge amount of money, how the transaction went unnoticed by regulators?

My pointing out irregularities and frauds committed in PSBs too was, what we have read in news papers and what we experienced in our working days. If my pointing out mistakes and frauds committed in PSBs like, Harshad Mehtha case, for which court punished some guilty and  loans granted and huge amounts remain unpaid by various borrowers, which went bad and written off, is viewed by you as" generalized, unwarranted and uncharitable" I do not know how to name them. Let the readers decide.

I only expressed my feeling, that private banks should co exist with PSBs giving a competition which will be good to general public. General public are our masters.

In spite of all the controls by various agencies, how that advance to King Fisher was allowed to go out of hand resulting in huge provision out of profit, needs some thought.

Government takes in to consideration various factors when allowing private banks, and I only expressed my view that we should not oppose private banks just for the sake of opposing.

Mr perumal, in my various mails here I also pointed out how some of the like computerization, which were opposed by us have become inevitable and accepted by all and how in other industries the private sector proved their worth, like airline and telecom.

Please don't take my comments as insulting or against PSBs but as a wish and lament of a well wisher of the general public.

Finally, past history points out lacunae in control and now RBI exercise better control over banks to prevent what happened during last century.  Past gives us chance to rectify and regulate and not stunt the growth.

Regards

Veeraswami V

Sent from my iPad 

[manoj kumar majumdar]

Subject: Issue of new Bank licenses

A controversy is now raging in this blog on the subject of issue of Bank licenses to the private corporates. Some of the members have opined in favour of co-existence of private and public sectors in  banking. On the other hand some of the members are bitter about further private participation . I am dismayed to find that certain writers in this column have made caustic and intemperate remarks against those supporting the issue of license to the private corporates.On any issue views are bound to be different which engender healthy debate. In such debate, every participant should be tolerant to others' views.
A report has been highlighted in this context which alleges that country's biggest private Bank trio, namely, ICICI Bank, HDFC Bank, Axis Bank are indulging in money laundering operation, flouting RBI regulations, violating Foreign Exchange Regulation Act, KYC norms etc. This has come to the knowledge of the reporting agency through sting operations conducted over months. However, there is no specific case of money laundering complaint. The said Banks have ordered thorough investigation over the general complaint. According to a latest news, ICICI Bank has suspended 18 employees alleged to have indulged in money laundering. Actions taken by the Banks are prompt.
The above report has been used as a strong argument against expansion of private sector in banking. I think such conclusion is too simplistic. It is projected as if the said private Banks are pursuing a policy of money laundering, FERA violation , RBI guidelines and KYC norm violation . No Bank, wheather private or public can indulge in such activities. If at all, this is an act committed by individual or group of corrupt officials.
In this connection I quote here from a news report published in the Telegraph dated 14.3.13 titled " Rs.120 crore bank fraud hits finance corporation" :
" The WBIDFC had invested Rs.120 crore in two instalments , first in August last year (Rs.59 crore) and then in January this year  (Rs.61 crore) in fixed deposits . The Corporation had received certificates against the FDs, which later turned out to be forged. ....Sources said both the FDs were opened in the Circus Avenue branch of UCO Bank. ..... Police sources said the fixed deposit accounts were opened in the name of another company and not WBIDFC. The corporation had received the FD certificates from the Bank in its name."
The next day's report reveals that the branch Manager has been arrested and remanded in police custody till 18th March 13.
From the above shall it be appropriate to conclude that PSU Banks are a failed experiment ? We know from our past experiences that PSU Banks have been BRAZENLY utilised by political parties of all hues and colors for narrow political gains. Loan mela was a common feature during 70s and 80s  where directives came from petty local to national leaders. One particular central minister of Banking earned much notoriety for his excesses.All these resulted in loss of hundreds of crores of rupees of Bank's fund. Should these episodes lead us to believe that PSU Banks are a failed experiment ?
One writer rightly observed that in our over enthusiasm we once objected to computerisation, private participation in telecom sector, introduction of private courier service etc. Subsequently, our ideas proved utterly wrong. Telecom services has now reached  even to the poor which once was the domain of rich  and upper middle class. Thanks to privatisation.
With change of era we should shed our dogma and antiquated beliefs. The world around us is changing and if we fail to adapt to such change, we must perish.
       Manoj Kumar Majumdar Retired (VRS) Sr. Manager, PNB, Calcutta.

[perumal maruthu]

Dear Sir,

Regulator (here RBI) can ensure macro level supervision. RBI can not inquire into every account, every normal banking transaction of every Branch! There are Guidelines of RBI and Ground Rules of IBA to observe/conduct "GOOD" banking upholding ethical standards. No Bank, be it PSB or Private, should  indulge in "ILLEGAL" activities like money-laundering. Extending one's support to such activities and defending such erring banks is not in conformity with the National interest, more so for a Pensioner!

A lapse or deviation of a PSB, can not be the basis for justification of anti-people, anti-national and any illegal  activity of pvt Banks.

As regards, bad loans of PSBs, every one knows well that it is the result of political influence at the top level.

The Late Harshad Mehta misused Bank of Karad and Bank of Marad , both of them PRIVATE BANKS, in the stockscam. I am not aware of direct involvement of any of the PSB; perhaps may be victim of the scam fall-out. In fact, it was a Bank of India Branch that brought to light 'how the two pvt banks' acted as conduits for Harshad Mehta!

M.Perumal

From: Veeraswami V <veera...@yahoo.com>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Cc: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>; "moha...@gmail.com" <moha...@gmail.com>
Sent: Saturday, 16 March 2013 4:28 PM
Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

Mr perumal

I too read Times of India.

I never try to disgrace PSU banks, but express my views on what happens really. Who am I to bail out any one? If they have committed frauds they have to be punished, for which an enquiry Is already underway, both internal as well as government agencies.

Yes malpractices are done deliberately and not by accidents or mistakes and whoever done that must be punished.

I still maintain if the regulations are framed and followed strictly these frauds could have been avoided. Every bank, both private and public sector, are inspected regularly by various authorities. If these frauds have been going on for long involving huge amount of money, how the transaction went unnoticed by regulators?

My pointing out irregularities and frauds committed in PSBs too was, what we have read in news papers and what we experienced in our working days. If my pointing out mistakes and frauds committed in PSBs like, Harshad Mehtha case, for which court punished some guilty and  loans granted and huge amounts remain unpaid by various borrowers, which went bad and written off, is viewed by you as" generalized, unwarranted and uncharitable" I do not know how to name them. Let the readers decide.

I only expressed my feeling, that private banks should co exist with PSBs giving a competition which will be good to general public. General public are our masters.

In spite of all the controls by various agencies, how that advance to King Fisher was allowed to go out of hand resulting in huge provision out of profit, needs some thought.

Government takes in to consideration various factors when allowing private banks, and I only expressed my view that we should not oppose private banks just for the sake of opposing.

Mr perumal, in my various mails here I also pointed out how some of the like computerization, which were opposed by us have become inevitable and accepted by all and how in other industries the private sector proved their worth, like airline and telecom.

Please don't take my comments as insulting or against PSBs but as a wish and lament of a well wisher of the general public.

Finally, past history points out lacunae in control and now RBI exercise better control over banks to prevent what happened during last century.  Past gives us chance to rectify and regulate and not stunt the growth.

RegardsVeeraswami V

Sent from my iPad 

[saradindu basu]

It is true that mistakes and frauds do happen both in private sector and PSBs. But, when deliberate "mistakes" happen as part and parcel of corporate policy, the fraudsters can't be forgiven. The logic for such anti-national activities shouldn't be attributed to failures of RBI, lac of regulations and supervision. It is quite astonishing to hear that Inspectors are posted as punishment postings and they are without proper knowledge. At laest, I will not dare to say like these.
 
It is true that many mistakes/frauds are occuring in PSBs. DRI,Small loans and Agri loans disbursed by PSBs for implementing Govt. Sponsored programme. Your sweeping comment regarding writing-off all tractor and well-digging loans are highly disinformative. In my Bank, we used to mortgage agricultural land as well as register bank's charge with motor vehicle Registration Authority for the related tractors. Of course there were defaults due crop failures etc. Fate of one brick-klin loan and other fishery loan can 't be an yardstick to judge PSBs contribution in rural/remote areas.
 
I agree with your comment "Although banks were Nationalised with good intention" but strongly disagree with '' every thing misused".
 
I agree with you that we have to co-exist with private sector and in the modern world we have to change according to time. But, modern world doesn't mean, at least to me, handing over our scarce resources to the entities whose motives are illegitimate.
 
How can anyone say that those who served only public sector are not competent.
I do go to elite private sector banks and will never say that services are bad. But, please don't force me to tell about their charges, fixation of minimum balance criteria. Personal experiences hardly matter, numbers of complaints lodged with RBI will tell the real story.
 
I have nothing against elite private sector banks but I strongly disagree with those who in order to upgrade elite private sector banks start pointing deficiencies of PSBs as if they were not part of the system.
 
--Saradindu Basu,
  Greater Noida. 

 
      
 
 
 

---

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY
From: veera...@yahoo.com

Date: Fri, 15 Mar 2013 13:23:16 +0530
To: bankpe...@googlegroups.com

[Veeraswami V]

Sir

As you rightly said

bad loans of PSBs, every one knows well that it is the result of political influence at the top level

The political influence in top level is same as big private bank share holders. In both cases the bank money is misused.

Regarding RBI supervision, the amount involved asper your own version is huge and RBI is certainly answerable for any lapse in inspection.

We should not try to condone the frauds or illegal activities of private or PSB.

Regarding Harshad Mehtha case, may be it started with Bank of Karad or Marad but subsequently some PSBs also got involved and some GM level officers and a chairman was also prosecuted, along with some lower level officers. Please go through old records.

Committing mistakes or indulging in fraudulent banking is prevelant in both areas, pvt and PSB.

Please go through recent , during last moth, fraud in a Nationalised bank in Calcutta.

So let us as experienced bankers and senior citizens insist that government, RBI increase controlling machinery so no such things happen in future.

Instead we should not oppose private banks on the whole, without which, our net banking or credit cards or other things would never have seen the light.

Please read

Veeraswami V

Sent from my iPad 

[Veeraswami V]

Thank you Mr Basu.

I too tell what I told only, what I seen experienced. I too want the co existence of both private banks and PSBs. It is not proper to say all private banks are bad. 

Whether the 'mistakes' happened as part of corporate policy is yet to be established. Enquiry ordered by banks as well as RBI and Government. Let us not jump to conclusions .

 I still maintain most of the inspectors lack knowledge. Recently when I asked about a particular circular, which I saw in RBI website, regarding facilities to customers, most pleaded ignorance and don't follow the rules.

I don't give any sweeping remark regarding right off. There were so many parliament replies points to crores of bad loans. Crores written off.

Recent CAG report

CAG tables report in Parliament, finds lapses in Rs 52K crore farm debt waiver scheme

By ANI | ANI – Tue 5 Mar, 2013

It all happens every often only due tonlac of supervision and control by RBI and other. So I stand by my logic.

Most of the public sector banks too started changing heavy for service. Last year a PSB charged each account certain amount for group insurance and debited even small SB account holder. Adding insult, they said, when enquired, they will charge if the balance goes down, a minimum balance penalty. On my questioning under RTI full details, they reversed the debit in all SB accounts.

Regarding, your contention regarding pointing deficiencies in PSBs it is our duty to point out deficiencies in both private and PSBs, without blindly saying private is bad.rot is there in both and that the regulation and control should be tightened.

Just because lice is there in the hair, we don't cut the head

Veeraswami V

Sent from my iPad 

[perumal maruthu]

Thank you sir for making the fine distinction between a mistake/lapse and a criminal act! "The lapse of a PSB can not be a justification for the crime of a Pvt Bank".

Thank you for your personal encounters in disbursing credit and recovery!

M.Perumal

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[srinivasa iyengar]

Dear Sir,
Here i find the arguments quite biased towards private sector banks. The union minded people are just waiting for some incidence, to blame the private sector banks. we must remember that public sector banks are not holy cows, they too have much more skeletons in their cupboard which we all know. Recently the CAG has come out with irregularities of large proportion in the Loan waiver scheme. Who knows this could be another mega scam in the offing. Hence to argue that all govt banks function ethically and private do not is a wrong perception. One should accept the facts that the customer service in private sector banks are far far superior because of its technological supremacy. Hence a healthy unbiased debate in this forum will help many to understand the reality.
Rgds.
P T srinivasa  

---

From: perumal maruthu <perumal...@yahoo.co.in>

To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Sent: Saturday, March 16, 2013 10:33 PM

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

Dear Sir,

Regulator (here RBI) can ensure macro level supervision. RBI can not inquire into every account, every normal banking transaction of every Branch! There are Guidelines of RBI and Ground Rules of IBA to observe/conduct "GOOD" banking upholding ethical standards. No Bank, be it PSB or Private, should  indulge in "ILLEGAL" activities like money-laundering. Extending one's support to such activities and defending such erring banks is not in conformity with the National interest, more so for a Pensioner!

A lapse or deviation of a PSB, can not be the basis for justification of anti-people, anti-national and any illegal  activity of pvt Banks.

As regards, bad loans of PSBs, every one knows well that it is the result of political influence at the top level.

The Late Harshad Mehta misused Bank of Karad and Bank of Marad , both of them PRIVATE BANKS, in the stockscam. I am not aware of direct involvement of any of the PSB; perhaps may be victim of the scam fall-out. In fact, it was a Bank of India Branch that brought to light 'how the two pvt banks' acted as conduits for Harshad Mehta!

M.Perumal

From: Veeraswami V <veera...@yahoo.com>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Cc: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>; "moha...@gmail.com" <moha...@gmail.com>
Sent: Saturday, 16 March 2013 4:28 PM
Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

Mr perumal

I too read Times of India.

I never try to disgrace PSU banks, but express my views on what happens really. Who am I to bail out any one? If they have committed frauds they have to be punished, for which an enquiry Is already underway, both internal as well as government agencies.

Yes malpractices are done deliberately and not by accidents or mistakes and whoever done that must be punished.

I still maintain if the regulations are framed and followed strictly these frauds could have been avoided. Every bank, both private and public sector, are inspected regularly by various authorities. If these frauds have been going on for long involving huge amount of money, how the transaction went unnoticed by regulators?

My pointing out irregularities and frauds committed in PSBs too was, what we have read in news papers and what we experienced in our working days. If my pointing out mistakes and frauds committed in PSBs like, Harshad Mehtha case, for which court punished some guilty and  loans granted and huge amounts remain unpaid by various borrowers, which went bad and written off, is viewed by you as" generalized, unwarranted and uncharitable" I do not know how to name them. Let the readers decide.

I only expressed my feeling, that private banks should co exist with PSBs giving a competition which will be good to general public. General public are our masters.

In spite of all the controls by various agencies, how that advance to King Fisher was allowed to go out of hand resulting in huge provision out of profit, needs some thought.

Government takes in to consideration various factors when allowing private banks, and I only expressed my view that we should not oppose private banks just for the sake of opposing.

Mr perumal, in my various mails here I also pointed out how some of the like computerization, which were opposed by us have become inevitable and accepted by all and how in other industries the private sector proved their worth, like airline and telecom.

Please don't take my comments as insulting or against PSBs but as a wish and lament of a well wisher of the general public.

Finally, past history points out lacunae in control and now RBI exercise better control over banks to prevent what happened during last century.  Past gives us chance to rectify and regulate and not stunt the growth.

Regards Veeraswami V

Sent from my iPad 

[saradindu basu]

Dear Shri Mohan,
                             Authorities are highly reluctant to enforce banking discipline in their blue-eyed "elite"private bankers who know very well that authorities are partial to them. So they go on and on in breaking rules.
 
Regards,
 
--Saradindu Basu,
  Greater Noida.

---

Date: Fri, 15 Mar 2013 05:56:29 -0400

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

From: moha...@gmail.com
To: bankpe...@googlegroups.com

[saradindu basu]

Dear Shri Perumal,
                               We all know-- all that glitters is not gold. Honourable Chief Justice of India Justice Altamas Kabir recently said in Kolkata that our society  is in the habit of making icons.For some of us, "elite" private sector banks who generally operate from well-laid out and air-conditioned premisses are definitely their icon of this time. I don't feel pain in it. My pain occurs only when I observe that ex-Public Sector Bankers start humilating their own PSBs vis-a-vis "elite" private sector banks.
 
--Saradindu Basu,
  Greater Noida.

---

Date: Thu, 14 Mar 2013 19:18:35 +0800
From: perumal...@yahoo.co.in

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

To: bankpe...@googlegroups.com
CC: saradin...@hotmail.com

[THYAGARAJAN VENKATRAMAN]

I do agree.  However I find that private banks are more corrupt and commit day-light robbery than the PSBs'.

V.Thyagarajan

[perumal maruthu]

Dear sir,

We are not comparing the services of Banks in the TWO Sectors!

We are only commenting on the ILLEGAL acts of certain Banks reported by the PRESS and where an enquiry has been ordered by the Gov't/RBI. I do not understand why a Retiree/Pensioner should feel irked?

Could any one expect Justice from persons getting monthly Pension from PSU Bank but trying to defend the "ILLEGAL" acts of certain Private Sector Banks? What is the consideration for defending the illegal acts?

I am defending Nationalised Banks because they are our Nation's Banks. They are people's Banks! They are not meant for making PROFIT by illegal acts!

We, Pensioners are also STAKEHOLDERS of PSBs. So, we defend them!

[JSOMA SHEKARA]

Mr.Srinivas Iyengar

Your contention that service in private banks far more superior than PSU banks is completely wrong. 

First of all who are the customers of Private banks. They purposely filter customers by prescribing high minimum balance SB starting from Rs.10000 to Rs.25000. In one reputed private bank minimum balance to be maintained is Rs.25000/-. Penalty for not maintaining minimum balance is Rs.750. Customers who can afford such minimum balance have multiple debit and credit cards. They never visit branches except for major transactions. 

Though these banks  also maintain ZERO balnce accounts it is restricted to salary accounts of reputed companies.

Now tell me what is the efficiency required for serving such customers.

Where as in PSU banks customers consists of all sections of society. There are large number of Pensioners accounts. Employees of corporation/muncipalities most of them illiterates.

Even today issuing of loose leaves, cash transactions in branches are high. High efficiency, patience and politeness required to serve such customers.In PSU banks for any problem you can directly meet senior manager and get problems solved.

In private banks you have to contact only via phone or submit your queries online. It is not customer friendly.

I prefer keeping Rs.2500/- FD  in PSU bank and earn high 

interest. Forcing customers to keep high amounts in SB is unethical.

[Veeraswami V]

Mr Basu

Although the banks agreed to recall Kingfisher loans long back, till no recall notices sent. This I quote from Times of India of today. They are yet to invoke the promoters guarantee too.

See the article: 

http://economictimes.indiatimes.com/news/economy/finance/fm-p-chidambaram-warns-rich-promoters-on-loan-defaults/articleshow/19050886.cms

Veeraswami V

Sent from my iPad 

[Veeraswami V]

Dear Sri somasekara,

I have been telling here that frauds and mismanagement s are common in both private and public sector banks. On the government giving license to open new private banks, we should not oppose blindly but encourage both private and PSBs to co exist. The RBI and government should improve the control mechanism so nothing untoward happens, which will affect small customers.

All private banks are not catering to the needs of big rich customers. I south, there are Karur Vysya Bank, Lakshmi Vilas Bank and City Union bank which are giving excellent service.

Even among private banks there, banks mentioned by you, which caters to rich to very rich customers. We ordinary people go to ordinary banks who give us good service. All are not computer savvy and don't do electronic banking.

If you had gone through my earlier mails you would have seen my comparing the two.As. Customer we need a pass book to be entered immediately or cash given promptly.

For these things I fully agree with Sri. Srinivasa Iyengar. 

Istead some people, point only the minus points in private banking, conveniently forgetting that same is the case with PSBs too. One gentleman mentioned about recent news of money laundering against three private banks, which is under enquiry by RBI and government and to be proved the involvement of management. 

In my opinion small depositors need small banks, private or PSB, who gives good service to customers. We ex staff of PSBs get service in our bank. I only request , those who criticize issuing of licenses, to visit private and PSB ( not where he worked) and judge.

Time has come when we cannot avoid private sector and co exist with them. Some feel, just because we retired from PSBs we should support PSB . First let them  understand pension is our right got after prolonged fight of the unions and just getting does not mean we should not point out mistakes.

If so, no government officers, Army or police officer can criticize their parent department.

Sorry for long mail. I love my PSB bank but love to see it improve services in competition with private banks.

The subject has taken lot of time and energy of all of us. Let us stop opposing private banks and let the public to decide the best,

After all who are we? It is public money and their decision to choose

Regards

Veeraswami V

Sent from my iPad 

[Veeraswami V]

Dear Srinivasa iyengar,

The argument or you can call discussion started on the government giving license to new private banks.

In my opinion private banks like city union bank, Lakshmi Vilas bank, karur vysya bank or federal bank are giving excellent service and attract customers. No one defends illegal acts of private banks or PSB s and in my opinion the regulatory mechanism should improve. If proper supervision are there, no frauds can happen. The recent complaints against some three private banks regarding alleged money laundering is being enquired by various agencies. That does not mean there is no fraud in PSBs, to mention a few like Harshad Mehtha case to recent fraud in Calcutta, involving crores, in a Nationalised bank ( refer. The Telegraph dt 13th). 

We go to the bank which gives good service to customers, PSB or private, let them compete with each other and help public.

Some forget Nationalised banks are no more Nations banks, but there are lakhs of public share holders including institutions and partly owned by them. It is our duty to point out the mistakes

Regards

Veeraswami V

Sent from my iPad 

[srinivasa iyengar]

Dear Sir,

I never defended in any part of my communication the illegal acts of private banks. I only brought out the fact, that the attitude of few in jumping the gun and who dont appreciate the good things about the private sectors banks. Please note just because we get pension from our banks and hence turn blind eye to all the misdeeds and scams happening, is not a justified one. One should be open to healthy criticism rather than getting irked.

Rgds.

P T Srinivasa 

[manoj kumar majumdar]

Dear members,
     Private sector bashing is a favourite pastime for some pseudo leftists who become wide-eyed and vociferous at the smell of slightest lapse committed by private organisations. I donot term the lapses  and violations committed by the private Banks trio as insignificant, but these are of serious nature. But I reiterate that these violations are not Bank's policy and Bank management does not encourage them. These are committed by a handful of greedy and corrupt officials. Is it not a fact that the said Banks have promptly initiated action?
    One respected member complained that private Banks stipulate a minimum balance of Rs.10000/ or so and thus they are anti-poor. It is a very strange argument. It is not necessary that every Bank has to cater to the needs of the poor.There are many economic segments in the society and different  Banks, big, medium or small would cater to each segment's need according to their suitability. In the Railway there are different classes like, AC Ist to sleeper and unreserved. Passengers will choose the class according to their economic status. The Railway authority cannot do away with the class distinction for the sake of social equality. Similarly, on the long-distance routes, AC volvo bus and ordinary buses are plying side by side. We cannot do away with the AC volvo buses just because they cater to elite class of passengers.
     One fact has to be accepted that the  private sector is much larger than the public sector in our country and elsewhere in the free economy. Large private corporates to small private enterprises are the largest employment provider. Private sectors run much more efficiently than the public because of survival instinct. This is applicable for Banks too. One example is sufficient to prove my point. Gross NPAs of PSU Banks have risen from Rs.71080 crore as on March 2011 to Rs.1.55 lakh crore as on December 2012, i e, 118% rise in just 21 months. This is mind-boggling. This reflects the state of economy of our country and inefficient handling of the credit portfolio. There are other reasons too. Political complicity and Government's reluctance to punish the large corporates who are willful defaulters. The most glaring is the case of Kingfisher Airlines where as much as Rs.7000 crore is exposed. The largest losers are SBI, PNB, BOB, BOI etc. The Government is unable (unwilling ?) to compel its promoter to bring in his private wealth to clear the dues though the man is known to spend hundreds of crores for leading a luxurious life style. The Government is, however, a part of public sector.
       We should consider neither sacrosanct. Each system has merits and demerits. For efficient and smooth running of the economy, public and private sectors must co-exist. The keyword is control and watch-dog role by RBI and other agencies.
      : Manoj Kumar Majumdar, Retired (VRS) Sr. Manager, PNB< Calcutta

[perumal maruthu]

Dear Mr. Majumdar,

AIBOC has issued circular calling upon its Members to fight against the New Bank Licensing Policy. Does it mean all the Office-Bearers/Members of Aiboc are COMMUNISTS?

NOBW, one of the Constituents of UFBU, has also endorsed the view of UFBU for fighting against this policy. Is NOBW also a COMMUNIST Union? Ditto with The Congress Union....is INTUC a COMMUNIST Union? Pl avoid branding anyone defending the PSUBanks as COMMUNIST or pseudo Communist and thereby try to JUSTIFY the New Corporate Bkg Policy or the ILLEGAL acts of the Cosmetic Banks! 

 

Some Members of this Forum have given their views on "why does the Gov't want to merge 6 or 7 Banks into a GLOBAL size Bank thereby destabilising the WELL ESTABLISHED PSBs and how its intention is NOT JUSTIFIED in granting permsission for NEW CORPORATE Banks?"

Has anyone batting for COSMETIC Banks given a CONVINCING reply?

For the serving staff, it is the question of not only survival but also retaining their hard earned rights. 

 

Regarding, AC Bus service comparison, NPA, Scam on Agri write-off, political interference in Lending to companies like KingFisher/Deccan Chargers etc.....many members of the Blog have made known their views based on personal experience and History even at the cost of repetition. 

 

ICICIBank, the Leader Bank of the ELITE group Banks has refused to accord the benefit of 7th BPS settlements for their(former Bank of Madura Staff about 2400) Pensioners who retired in the relevant period. Can you allay the reasonable fears of Pensioners that their monthly pension is guaranteed after Merger/Demerger/Mega merger or after privatisation? 

M.Perumal

Canara Bank Pensioner

[Veeraswami V]

Dear Sri majumdar

Your letter is nice and upto the point.

I have been telling here that the Tim has come for PSBs to coexist with private bank.

We all know so many modern systems were introduced by private and followed by PSBs.

Some of the private banks are running nice and giving very good service. They are here for nearly a century and started long before any of the PSBs.

As you rightly said, it is not necessary every bank should cater to poor only.

As some one pointed out earlier, in a city some go by ordinary bus, like Calcutta mini bus and some go by Air conditioned bus, even though both run by state corporation. What is wrong if you give some comfort for those who can afford to pay more.

I can say, most of us retired from PSBs, also have account in private bank and we find the difference.

Frauds happen in both private and publi banks, no one can claim they are better.

Veeraswami V

Sent from my iPad 

[Veeraswami V]

Systems to prevent money laundering in India perfect, says RBI - Business Line

The Reserve Bank of India today sought to downplay the money-laundering allegations against three private sector banks, saying the country has a “perfect” system to prevent such offences and that not a single such transaction took place in the sting operation.

The country’s three largest private banks—ICICI bank, HDFC Bank and Axis Bank—were last week accused of indulging in money laundering both within and outside with an online portal, Cobrapost, claiming that the sting operation conducted by it had revealed a scam.

“Allegations do not mean flouting norms. There is not a single transaction which has taken place. KYC violations will happen in any system. These are all transactional issues and have nothing to do with money laundering,” RBI Deputy Governor, K.C. Chakrabarty, told reporters after a meeting with bankers here.

He was responding to a question on the issue.

The senior most Deputy Governor further said, “there is no scam (that) has happened...as no transaction has taken place.”

“Let us not unnecessarily downgrade ourself. Our system to prevent money laundering is perfect, absolutely nothing (wrong with it),” he said.

Chakrabarty also said the RBI will further tighten the anti-money laundering norms if needed. “If we find there is a need to further tighten any guidelines, we’ll do that.”

The comments come even as the RBI, Finance Ministry and the banks concerned are probing the allegations that some officials of these banks offered to facilitate money laundering.

On March 14, Cobrapost had released the contents of purported video recording of officials of HDFC, ICICI and Axis Bank allegedly agreeing to receive unverified sums of cash and put them in their investment schemes and benami accounts in violation of anti-money laundering laws.

Following the allegations, the banks had also suspended some employees in question.

The RBI has also initiated scrutiny of the three banks for alleged violation of KYC guidelines. It has said final reports will be completed by March 31 and thereafter further course of action as necessary will be initiated.

Veeraswami V

Sent from my iPad 

[saradindu basu]

Hope, all of us remember that the debate started as and when some of us differed with  the decision of UFBU leadership to oppose new bank licensing policy facilitating entry of corporates in the banking sector of our country. In any democratic set-up, there would be differences of opinion and so, some of us may in his/her wisdom may differ with the collective wisdom of UFBU leadership. But, while doing so-- let us not highlight the only deficiencies of PSU banks and  only eficiencies of "elite" private sector banks. If all these happen, it is bound to have some reactions even at the cost of being branded-pseudo leftists/ wide-eyed.
It is true that private sector is very big employer and plays very impotant role. Many private sector business houses are running successful business even for centuries. But,banking is a vital sector and can't be compared with traditional private sector and that is why there was "social control of banks" prior to nationalisation.
 
--Saradindu Basu,
  Greater Noida.

---

Date: Wed, 20 Mar 2013 13:42:17 +0200

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

From: maju...@gmail.com
To: bankpe...@googlegroups.com

[Veeraswami V]

Yes mr Basu,

Nice debate on private and nationalized banks.

As you rightly said the efficiencies and deficiencies are there in both sectors. Frauds are happening every where. No frauds should be condoned. Both of have to learn from other. May be social sector is more benefited by public sector. Each have their role well defined.

But for that no one should oppose any new entrants be it private or public. We exist with private banks for centuries. Who are in private banks. Except some youngsters most came from PSBs.

Let us shed the hate for private banking, let us learn from them how they excell.

Let all of us welcome private banks but the ufbu should see the unbiased control exercised by RBI and finance ministry on both private and psb.

Veeraswami V

Sent from my iPad 

[perumal maruthu]

Dear Sir,

Thank you for your balanced views!

I am furnishing below a communique from All Kerala Bank Employees' Federation on Dhanalaxmi Bank.

 

Dhanalaxmi Bank should be taken over by a Public Sector Bank

For quite some time, the performance of the 85 years old Kerala based private sector Bank – DHANLAXMI BANK has been causing concern and worry notwithstanding the repeated statements of the Bank management that all is well with the Bank.  In view of the deteriorating financial condition of the Bank, Reserve Bank of India directed a 15 point Monitorable Action Plan (MAP) and RBI has been closely monitoring the affairs of the Bank. The main reason for the present problems of this Bank has been the attempt of the management to convert this traditional Bank into an ambitious modern Bank. Many officials were appointed in the Bank with huge remuneration unrelated to the capacity or performance of the Bank. The name of the Bank was changed from Dhanalakshmi Bank to Dhanlaxmi Bank.  Corporate office of the Bank was unwarrantedly shifted from Thrissur in Kerala to Mumbai.   The total business of the Bank was around Rs. 22,000 crores has slipped down but the same is being camouflaged by inter bank deposits and other cosmetic measures.  There are also reports the Bank may not show profit for this Quarter.  It is also learnt that sensing these developments, some of the customers have withdrawn their deposits and it is also reported that even Mr Amitabh Chaturvedi who had resigned as MD has a few days ago withdrawn his family deposit to the tune of around Rs. 5 crores.  Management has also started to withdraw various benefits of the employees and it is expected that some of the officials may be asked to resign and leave the Bank in the name of cost cutting.  The sudden resignation of Mr. Chaturvedi cannot be taken as normal development and there is more than what meets one’s eye. Before the Bank gets into further problem, in the interest of the customers and employees and officers of the Bank, we demand that RBI and Government should immediately take steps to merge this Bank with one of the Public Sector Banks.

[L S RAMAN]

Private or public Banks have to follow norms laid down for various transactions.Prevention of money laundering is an important requirement to be complied with and RBI as regulator has a responsibillity to ensure compliance.
  The three Banks said to be involved in the scam have to come out with the truth. If the news is false why they should suspend their employees.They should investigate and come out with the findings of the relevant investigations.It appears IRDA is also concerned about the issue since investments in insurance policies appear to be involved in money laundering.Let us learn preventive lessons.

[daulat munot]

Sir, At present we observe that our Government is day by day surrendering before big business houses and corporates.On the name of economic reforms,all financial decisions are left by the government herself and approached to be decided by the market forces.Its as like to ply a car speedily without the break use.

No any sector in the economy should be given monopolistic opportunities.The burning examples of this is the past recession.We must not forget this that our country remained safe due to existence of the public sector.Imbalance growth of any one sector will be cancerous for our national economy.I request our political leaders,please don't leave the total economic power in private hands.In politics it is well said that if u want the country weak then take the financial powers to market forces.The market forces have only one motto,which is only to earn PROFIT. They have nothing to do for the mass public interests and social welfare.it seems that new bank licencing policy  is gearing to step back to our banking industry to the age of  NATIONALISATION OF INDIAN BANKS.

We hope our government will take care of the balanced view of both toe public as well as private sectors to avoid emergence of monopoly in any of the economic sector which is Detritus.

Comradely Yours,

D.R.MUNOT

[Veeraswami V]

Mr raman

Irregularity in three banks may be true. RBI and other agencies have initiated enquiry. Hopefully everything will come out soon.Banks contention is some employees have done wrong and pending enquiry they were suspended. RBI has come out with statement no transaction taken place. Whole truth will come out when all the enquiries by all agencies completed. We have to find who is at fault, bank system or some employees.

I think,  suspension is a part of investigation, to remove the suspected employee to prevent further damage. False or true will come only in the end.

Veeraswami V

Sent from my iPad 

[manoj kumar majumdar]

Dear Mr. Veeraswami,
     Thank you for your wholehearted support to me and encouragement. I have been following all your letters on the subject of Licensing policy of GOI. Your arguments are based on sound logic. I appreciate your courage of conviction. Despite bitter criticism you remained steadfast in your belief.
     Its a matter of regret that some people hold on to dogma and never change their views despite a sea-change in the society and economic order. Its not logical that since UFBU protested government's policy of issuing license to the private entities,we must rally behind them without questioning the rationale. Its strange that those who hold opposite view are branded as reactionary, malicious and regressive.
Society progresses because some people have the boldness to swim against the tide. 
     with regards,

         Manoj Kumar Majumdar  Retired (VRS) Sr. Manager  PNB, Calcutta

[Veeraswami V]

Dear Sri manoj Kumar majumdar,

I retired (vrs) from a nationalised bank and still love my bank. When the union went on strike for nationalization in 1969 I too participated in strikes and demonstrations shouting ' Nationalise banking Industry'. But now after so many years of experience we find private sector is a good competitor to PSBs. After liberalization, we have seen so many changes. Banks, which were wholly owned by Government of India are now partly owned by private parties. In other words what we call PSBs are no more Government owned.

On the other hand Private banks give PSBs a good competitions by giving modern banking facilities and give very good customer service. As a public, who votes, I need good service and my pass book updated immediately, dds given quickly. 

Further what is wrong in private sector? In the last decade or so, private sector improved enormously from airlines, to airports, to telecommunications to Medicare, thereby creating lot of job opportunities.In fact most of our children are in private sector. Once we had to tolerate the bad service of Indian Airlines, when no alternative. With private sector entering, public get a choice and better service. 

I saw today, AAI( Airport Authority of India), which was formed solely for the purpose of maintains airports, is planning to hand over the maintenance to private/ foreign players, for getting better service.

My contention is both PSBs and private banks should coexist learning from each other and give the best service to the public.

Veeraswami V

Sent from my iPad 

[saradindu basu]

Dear Shri Veeraswami,
                                     I too joined my Bank on 2nd June 1969 at Karol Bagh, New Delhi Branch of my Bank where the President of our Bank's All India Employees' Federation(AIBEA) was also posted.Although union people did welcome the decision, as far as I remember, there was no such strike/demonstrations at that time by bank employees for nationalisation of banks. Please correct me, if am wrong. However, I hope, it will not be out of context to mention that the then Prime Minister, beloved Smt. Indira Gandhi, expressed her intention to nationalise commercial banks  in  All India Congress Committee Meet in a paper entitled "Stray thoughts on Bank Nationalisation." The delegates present at the  meeting received the paper with enthusiasm.Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969.Again in 1980 another lot of six banks were nationalised by beloved Smt. Indira Gandhi. Prior to that SBI was nationalised in 1955 and its subsidiaries were done in 1959.
 
Regards,
 
--Saradindu Basu,
  Greater Noida.   
 

---

CC: bankpe...@googlegroups.com
From: veera...@yahoo.com

Subject: Re: bankpensioner UFBU PROTEST AGAINST NEW BANK LICENSING POLICY

Date: Thu, 28 Mar 2013 19:37:59 +0530
To: bankpe...@googlegroups.com

[Veeraswami V]

Dear basu

I joined the bank in 1967. 

Although the banks were nationalised in a quick action by PM, prof to that date I remember some demonstration by Unions for nationalization, in Chennai. I do not know about north India. 

I still remember the joke in a news paper that lot of neon and plastic letters available, THE& LTD.

Veeraswami V

Sent from my iPad 

[jaya kumar]

              I find some people are vehemently fighting for private sector without analysing deeply. What happened to Kingfisher, Satyam.

        Sahara etc. How opening up of education and health to private sector have helped the public at large.?  Likewise, banks are dealing

        in public money and they are supposed to be trustees. How private/corporate entities whose only motive is maximixation of profit will
    
        fit into this category. Their only aim is maximum return with minimum resource. Otherwise, how will you justify looting of natural

       resources like iron ore, granite etc by private players.. Let there be more private players in manufacturing, infrastructure etc

       excluding social sectors and exploitation of natural resources.


        R.D.Jayakumar
        Retd BOB

[Veeraswami V]

You argument, I assume, support selective privatization. Am I right? Public money is not in PSBs alone. We had so many arguments in this subject.

One thing, if Sahara or Kingfisher or Satyam mis managed and closed who were affected? Not you and me or general public. Only their share holders.

What is private enterprise in respect of, iron ore coal or granite.First understand Government do not have resources to run these operations. They need money and the depend on private players.These private investors invest money and naturally need profit. They pay huge royalties and taxes to government and that is the income to public. A public company which incurs loss continuously, starts earning profit, once it goes to private hand. How?

We have seen so many public sector industries running on loss due to mis management.

Take the case of banks. PSBs because of mismanagement gave huge loans to bad companies. When these companies go down they pull the bank with them. Please compare the figures regarding bad loans and write of in PSBs and Private banks. You will find PSBs write of more.

When private bank declare an advance as bad and write off the share holders bear the loss, where as in the case of PSBs we bear the loss.

What is social sector? To uplift the lower strata of society by giving cheap loans. Have they cared any time about repayment? After 66 years of Independence and 44 years of bank nationalization we still talk about socially backward, write off and all. PSBs have failed in their given task. 

Let there be level paying field between private and PSBs, let they compete with each other.

PSBs are also after profit and not run on "no profit no loss" basis.

Ultimately it is the voting public are our masters and they decide where we go, private or public.

Now public understands more, reading news papers and Internet. They see how banks give loans to favored and how loans are written off.

Above all public get better service in private sector. With monopoly Air India or India Airlines could not get profit but smaller private airlines did. Artel, Vodafone give better service then BSNL and show better profits.

No need for big analysis

Veeraswami V

Sent from my iPad 

[daulat munot]

Sir, Private and public sectors both have merits and demerits.The prime need of our policy makers and economists not to take one sided role.

In a economy monopolistic situation is very deteriorating.Due to this,imbalance growth in a economy evolves.It creates economic dis satisfaction,discourage competition resulted to break down the economic growth of a country.Due to this rich becomes more rich and poor becomes more poor.It further widens the gap between rich and poor and promote backwardness and crimes in a country.

History is the conclusive evidence that in past all the blood revolution upon this earth took place due to wrong decision of politicians and policy makers.

As far as we public sector bankers  do not afraid from the competition.We are the mass bankers,not a class bankers.We have faced many up and downs and played significant role in the national economy.We only want and expect the balanced views from the Government.In a politics there is a proverb

that if you want to revenge with any country first weak its financial system on the name of economic reforms, allow and invite the foreign corporate to invest and start business as they did past before the independence of our country.If they did so our new generation will never forgive us.We should not forget that we got the independence not easily.History is a conclusive evidence of this.

D.R.MUNOT

 

[jaya kumar]

       Sir,

                Only because of investors complaint, SEBI has taken action against Sahara and in the case of Kingfisher, multiple banks funds

        are involved. Are they not public money?  I am having BSNL broadband connection and getting monthly concession of RS150/

        because I am a former public sector employee. Hence, simply blaming public sector and praising pvt sector without comparing cost,

        social obligations will not do good. What we need is to strengthen public sectors wherever feasible and promote private sector

         in other fields where public investment is not possible. We want healthy growth of both and ultimately growth of economy

        with equitable and just distribution. We have to create wealth and distribute the wealth to as many people as possible.

        I have started the discussion out of academic interest and I am not interested to pursue the matter further and leave it

        to the judgement of the readers.

          R.D.Jayakumar,

          Retd, BOB 

[Vvns Varaprasadrao]

Dear friends,

" In a politics there is a proverb that if you want to revenge with any country first weak its financial system on the name of economic reforms, allow and invite the foreign corporate to invest and start business as they did past before the independence of our country.If they did so our new generation will never forgive us.We should not forget that we got the independence not easily.History is a conclusive evidence of this."

The above paragraph is copied from Sri, D R Munot mail.

Basing on the above, can we conclude that what our Prime Minister

is presently doing the same thing or something else.

Varaprasad

On Mon, Apr 1, 2013 at 7:33 PM, daulat munot <daula...@gmail.com> wrote:

[Veeraswami V]

Dear Mr. Rao

You are right.

But what were we doing when our PSBs came with public issue. The banks gave loans too to buy shares. Did we go on strike? Why we did not? 

The whole lot of bank employees should have risen against the move. Why that lukewarm response then?

Again our great leaders created a situation where our representatives will sit in the Bank's board and help the bank administration. Inspite of them, big loans were given to top industrialists like King Fisher,. What use our crying hoarse about bad debts and write offs and willfully defaulters?

We are also equally responsible for these things 

Veeraswami V

Sent from my iPad 

[Kishore Kumar Nanda]

After seeing day and night both one can conclude which is better. But both will exist come whatever it may be. There is an external force to balance day and night. But in the system of co-existence of private & public sector who has to maintain the balance. A good governance can well balance it if the leaders donot develop any interest in the process. Now everyone can understand why there is necessary or unnecessary debate on the subject. --- On Tue, 2/4/13, Vvns Varaprasadrao <varapra...@gmail.com> wrote:

[Veeraswami V]

Sir

When the none laundering charges were made regarding three private banks were made a section of the people accuse all private banks as culprits and back frauds. To just saw the news in CNN IBN, about the alleged involvement of terrorist money by a nationalised bank. Are we to take this as example of all PSBs.

People should not accuse others and biased based on a single instance of fraud in a single bank

Veeraswami V

Sent from my iPad