Not all banks to be privatised, interest of employees will be protected: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman. (File Image)

Not all public sector banks would be privatised, Finance Minister Nirmala Sitharaman said on March 16.

Her statement came on the second day of pan-India strike called by the All India Bank Employees Association (AIBEA) against the central government's privatisation push.

Sitharaman, while briefing the press, said only some of the public lenders are being selected for divestment to strengthen their financial condition. In the process of privatisation, the government would assure that the social security and other benefits of employees are protected, she stressed.

"We have announced a Public Enterprise Policy, where we have identified 4 areas where public sector presence will be there, in this, financial sector too is there. Not all banks are going to be privatised," Sitharaman said.

"Even for those banks which are likely to be privatised, the privatised institutions too will continue to function after privatisation," she added.

"Interests of workers of banks which are likely to be privatized will absolutely be protected - whether their salaries or scale or pension, all will be taken care of," the finance minister further said.

The Opposition had pressed upon the government, during the Parliament proceedings on March 15, to address the concerns raised by the striking bank employees.

The strike was announced after the roll-out of Union Budget 2021-22. Sitharaman, while reading out the budget document on February 1, had announced the plans for further privatisation of state-run banks.

"Other than IDBI Bank, we propose to take up the privatisation of two Public Sector Banks and one General Insurance company in the year 2021-22," she had said.

While the bank employees' two-day strike will end on March 16, the employees of general insurance companies will strike on March 17, and Life Insurance Corporation (LIC) employees will protest on March 18.