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There is no dictionary in the world that treats privatisation and deficiency as synonyms – M Damodaran IAS, Retd. Former Joint Secretary, Banking Division, Ex-Chairman, SEBI

New Delhi, 27 Aug, 2021: All India Bank Employees’ Association invited M Damodaran IAS, Retd. Former Joint Secretary, Banking Division, MoF Ex-Chairman, SEBI, to address the attendees at AIBEA’s ongoing National Seminar series and participate in the conversation around People’s Money for People’s Welfare, in the light of the privatisation row of banking system in India. The speaker rooted the conversation in the fact that efficiency is related to ownership, and privatisation does not guarantee efficiency.

The speech covered the banking journey in the country including the event wherein  Imperial Bank of India became SBI in 1955, and the truth that if SBI had not reached out to every nook and corner in the country, half of the country would not have known what the banking is.

“India is not about the classes it is about the masses. Given the penetration, structure, and population, private banks would be able to serve the classes only. And the system should not treat a set of people differently on the grounds of the economic status. said M Damodaran IAS, Retd. Former Joint Secretary, Banking Division, MoF

Throwing light on the nitty-gritty of the current unwelcomed scenario, the communication covered the time and again leaks of anticipatory mergers and sale of banks which has played a big role in hiking the share price, like- Market cap of Indian Overseas Bank is greater than that of PNB and Bank of Baroda.

He added, “ a bank does not become better because its market cap is high, and a bank does not give good customer value if its profits are high.”

The speaker further shared suggestions for the improvisation of the current public sector banks’ health and functioning:

– Public sector banks must Build their own strengths

– Push the government so long public bank exists, there is an urgent requirement of fill-up the board position

– Tenure of Chief Executive is to be decided

– The rules of working of Public sector banks should not be different from the Private sector Bank

The seminar series by AIBEA has provided a healthy platform for the exchange of more concrete solutions for the government and the industry to consider. AIBEA has followed a productive method to fight against privatisation through this 31-day long seminar series.

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