November 27, 2012 / 11:41 IST
Criticising Union finance minister P Chidambaram's call for consolidation in the banking sector, CPI leader Gurudas Dasgupta dubbed him as an "all-time low finance minister," and said that the party would oppose any such move. Calling it an "absolutely anti-people move" which will create a monopoly in the banking sector, Dasgupta, who is also the general secretary of the All India Trade Union Congress (AITUC) said the party will protest against the move.
"I call Chidambaram an all-time low finance minister as he is moving in the wrong direction. He himself is acting in ways which will entirely put India at the mercy of foreign corporates. We are against merger of public sector banks because it will lead to further contraction of the banking system. This will lead to further curbing of competition which will lead to further non-availability of bank finance for marginalised people," he said.Dasgupta was responding to Union Finance Minister Chidambaram's call to create at least two or three large banks which can compete with the world's largest banks, when he inaugurated the annual banking conference in Pune last Saturday. "We must create at least two or three world-size banks. China has done it. If we want to be, and as we will be the third largest economy in the world, we must also have one or two world-size banks and some consolidation is inevitable," Chidambaram had said.Arguing the need for bank consolidation, the union finance minister had said, "Finding new business models will inevitably lead to some consolidation. We must not fear consolidation. I know there is pride and identity, but ultimately some consolidation would have to take place in the banking system in this country". Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
