News: Indian government urged to hike stake in banks

(BL 14/08/2006) Thiruvananthapuram - The Government should look at infusing more capital to increase stake rather than force public sector banks to raise Tier II and hybrid capital, according to Shantha Raju, outgoing general secretary of the All India Bank Officers' Confederation (AIBOC).

By subscribing to Tier II capital, foreign institutional investors and industrial houses were fast taking control over nationalised banks, which amounted to privatisation through backdoor, Raju said, while addressing a farewell meeting organised by the State Committee of the AIBOC.

He paid rich tributes to bank officers who have been sitting up late in their workplaces even in the remotest parts of the country, though some of their genuine demands have gone unheeded.

Recruitments to large number of vacancies are pending, but the Government is trying to de-unionise the cadre through its outsourcing move.

Some of the issues that officers wanted the bank managements to settle are a second option for pension, compassionate appointments and recruitment to at least one lakh existing vacancies.

The Indian Banks Association and the Government will be well advised to resolve these at the earliest and avoid what could be an all-pervading and crippling agitation in the financial sector, Raju added.

P.B. Thomas, State President, AIBOC, presided over the meeting. Among those who spoke were G. D. Nadaf, R. Sreeraj, M. Sreenath, P. V. Mohanan, S. K. Sanil and Vijaya Ananthakrishna. V. K. Jagannathan delivered the welcome address while Abraham Shaji John proposed a vote of thanks.