Bank Privatization Issues Every Person Should Know

There are 3 types of commercial banks, the Public/ Government bank, the Private sector bank and the foreign sector bank. Governments hold more than 50 percent of share in certain banks known as Public Banks are as follows:

The former list of Govt banks in India were

  • Allahabad Bank
  • Andhra Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • Indian Bank
  • Indian Overseas Bank
  • Oriental Bank of Commerce
  • Punjab & Sind Bank
  • Punjab National Bank
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank
  • IDBI Bank((77.79% government stake)
  • SBI+and it’s five associate Banks
  • Bharatiya Mahila Bank

Now the questions arise why government want to privatize the public bank?

Bank Privatization Issues In Details

After demonetization and Covid-19 pandemic the revenue collection had fallen down. Lots of business had shut down and no one have enough savings to start a new business and take a risk. Outcome of this Fuel price rise, LPG price rise, and sale/rent/lease of public property started.

 

Now let’s see the Public accusation regarding Bank Privatization:

 

  1. Government no longer control over the bank policy as we already seen when government stop control petrol price how it’s hiking every now and then.

 

  1. Government job security will demise and no government job benefits like work-paid leave, bonus, maternity leave, work duration etc. we all knew about how employee being exploited in private sectors.

 

  1. Poor Public cannot get cheap interest loan. Now on Bank became the puppet of rich and white collar People.

 

  1. People afraid that Bank turn into a monopoly market beside perfect competitive market. As some private bank take control the liquid capital.

 

Now analysis the Government point of view regarding Bank Privatization:

  1. Bank gets more equity.

 

  1. Interest of the employee will be protected.

 

  1. Government not liable for securitized for bank bad debt. Free for all expenses to manage structure of banking sectors.

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