- Kamgar Ekta Committee (KEC) was organized a All India Video Conference.
Ahmedabad. On 5th September, 2020 Kamgar Ekta Committee (KEC) was organized a All India Video Conference. The General Secretary of Indian Railways S&T Maintainers Union Alok Chandra Prakash has urged all employees throughout India that time has come and seeing through various platforms all sections of Trade Unions should have to be UNITED So that future of India should not go through which our freedom fighters have gone through.
Alok Chandra Prakash
The Topic of this conference was: Unite Against to Privatisation – Part 1 Bank Privatisation
Some inputs on BANKING SECTOR are also presented by Ashok Kumar from Kamgar Ekta Committee and Devidas Tulzapurkar, Vice President of ALL INDIA BANK EMPLOYEES ASSOCIATION (AIBEA)
All India Bank Employees Association, the oldest and largest national TRADE union centre of bank employees in India. ALL INDIA BANK EMPLOYEES ASSOCIATION is a unique trade union organisation in the comity of trade unions in the financial sector in particular and middle class organizations in general in our country.
MONOPOLIZATION OF BANKS AND FINANCE COMPANIES :-
* Global phenomenon; also in India.
* Out of top 10 Companies of World, 8 are financial Institutions.
* Out of top 50 Companies of India, 19 are financial Institutions.
* Giant financial Institutions required by giant monopolies.
* Fierce struggle among Capitalists groups for influence and control over these Institutions.
* Provides Capitalist group controlling banks to greatly increase their wealth and restrict growth of rivals.
NPA CRISIS – WHO GAINS:
* No penalty or punishments for Capitalist loan defaulters.
* RBI refusing to reveal names of large defaulters.
* Many ‘ Wilful defaulters’ – wrote off Rs. 68,000 crores of top 50 of them till September 30. 2019.
* 50% loans under moratorium due to Covid Crisis.
* NPAs could rise to 15% from 8.6% by March 2021.
* PSBs run in service of Capitalists and their Corporations – loans written off in last 7 years : Rs. 6.7 lakh Crore.
NPA CRISIS OF PSBs – WHO PAYS:
* Instead of insisting on recovery of loans, letting PSBs write-off loans.
* To make up for losses of PSBs, infused public funds of Rs 3.15 lakh crore to recapitalise PSBs.
* PSBs likely to require another Rs 1 lakh Crore for recapitalisation.
# People are being made to pay for crimes of Capitalist loan defaulters.
Recapitalisation is use of public funds to help big Capitalists through PSBs.
PLANNED WEAKENING OF PSBs TO ENCOURAGE PRIVATE BANKS:
* Loans CAGR of Private Banks -19.6% vs 8.5% of PSBs over last decade.
* Bulk of growth of Private Banks in last 5 years when large write-offs by PSBs led to big losses.
* Weak Capital structure of PSBs due to loses reduced their capacity to give loans.
* Private banks have added $ 6.3 billion to their Capital in last 3 months to further grow.
NATIONALISATION & PRIVATISATION OF PSBs – AGENDA OF BIG CAPITALISTS-1:
* Nationalisation of Banks in 1969 done at behest of big industrial houses.
* Needed Savings of entire population to finance their Capital needs.
* Private banks not considered safe by people to deposit all their savings.
* Needed to promote agriculture to provide market for goods produced by Capitalists.
* Promotion of agriculture through GREEN REVOLUTION required bank loans to farmers.
NATIONALISATION & PRIVATISATION OF PSBs – AGENDA OF BIG CAPITALISTS -2:
* Establishing rural branches costly and not profitable.
* Bringing banks under State control became necessary – but, was called a ‘ Socialist Step’.
* Priority Sector created.
* Rural banking expanded.
* Bank deposits soared.
* Loans to big industrial houses also soared.
# PSBs have been run in the service of Private Capitalist Corporations.
NATIONALISATION & PRIVATISATION OF PSBs – AGENDA OF BIG CAPITALISTS -3:
* By 1990s:-
* Capitalist monopoly houses had concentrated bulk of Country’s wealth with them.
* Had developed large home market.
* Wanted to grow globally.
* Were ready to allow MNCs in Indian market to get access to their home market.
NATIONALISATION & PRIVATISATION OF PSBs – AGENDA OF BIG CAPITALISTS -4:
* Launch of New Economic Policy.
* Globalisation through liberalisation and Privatisation.
* Banking Reforms :-
– Entry of Private Banks.
– Divestment of Shares of PSBs.
– Pressure on PSBs to compete with Private Banks and become as profitable.
# License for Payment Banks to RELIANCE, TATAs, BIRLAs, etc. to promote Digital Payments, another Source of profit.
PRIVATISATION OF PSBs- AGENDA OF BIG CAPITALISTS :
* Indian Financial Sector presently contributes only 15% of total Corporate profits as against up to 40% in USA.
* Indian Capitalists see big potential for profit in financial Sector.
* Capitalist monopoly houses want entire financial Sector under their control to ms maximum profits.
# Bringing banks under State control served interests of big Capitalists 50 years ago and Expansion of Private Banks and Concentration of Banking Capital through Mergers and Privatisation is now in their interest.
OPPOSITION TO PRIVATISATION :
* Bank Workers have unitedly opposed the successive governments.
* Opposed pressure on PSBs to become as profitable.
– Pointed out social responsibilities shouldered by PSBs – lending to farmers, small scale units, bank account for poor, branches in unbanked areas.
– Pointed out Political and Bureaucratic interference in their working.
PEOPLE MONEY FOR PEOPLE’S WELFARE –
DEMAND OF BANK WORKERS :
* Reorient banking to fulfill needs of all, savings of people to be used for their needs ; not to fulfill greed of a minority of Super-rich Capitalists.
* OPPOSE PRIVATISATION:-
* So that Control of banks does not go in the hands of PROFIT HUNGRY CAPITALISTS.
– As it hurts interest of Bank Depositors.
– As it leads to loss of jobs and increased EXPLOITATION OF WORKERS.
# Struggle of Bank Workers against PRIVATISATION deserves support of all those who care for future of our Society and Wellbeing of toiling majority of people.
* Struggle against PRIVATISATION is a Struggle of the Entire Working Class.
* Our Victory requires UNITY OF WHOLE CLASS and SOLIDARITY with every worker FIGHTING AGAINST PRIVATISATION.
* Our Victory requires SUPPORT OF USERs OF BANKING SERVICES.
