CPI writes to PM opposing introduction of bill to 'enable bank privatisation' in Parliament

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CPI general secretary D Raja has written to Prime Minister Narendra Modi, alleging that the government is planning to introduce the Banking Laws (Amendment) Bill, 2021 in the ensuing Winter Session of Parliament to enable the privatisation of public sector banks. In the letter, Raja has said the public sector banks act as catalysts in the economic development of the nation in general and for the underprivileged sections of the society in particular and privatisation would "jeopardise their interests".

"During the pandemic period, it is the public sector banks which have been giving uninterrupted customer services. We therefore are of the view that privatisation of public sector banks will jeopardise the interests of the common people and backward regions of the country. "We are opposed to any such retrograde move. We request you to revisit the decision of privatisation of PSBs and to withdraw the proposed Bill in the interest of the common people and nation," the Communist Party of India (CPI) leader said.

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He also said the only issue being confronted with the PSBs is that of huge Non-Performing Assets (NPAs) in which, he claimed, the major share is that of big corporates. "Successive governments have taken initiatives such as Debt Recovery Tribunals, SARFESI Act, IBC etc., but they have not yielded the desired results and therefore, ultimately banks were forced to write off those loans, resulting into huge losses.

"This shows that it is not the nationalisation of banks, which has failed but it is the wilful default of the corporates and big business houses, which have dragged the banks into this crisis. Time and again public sector banks have been used to bail out ailing private sector ones…," Raja said.