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Kolkata :

In a momentous celebration of the 55th anniversary of bank nationalisation in India, the All India Bank Officers’ Confederation (AIBOC), representing over 300,000 dedicated bank officers, praises the historic decision that propelled public sector banks to play a vital role in the nation’s economic development. However, the occasion also draws attention to the challenges and threats faced by these banks in the present day.

After India gained independence, the government confronted issues like the close ties between banks and industrialists, lack of bank credit for agriculture, and frequent bank failures. To address these concerns, the State Bank of India was established in 1955, and subsequently, 14 banks were nationalised in 1969 and 6 more in 1980. The main objective was to expand banking services, especially in rural and semi-urban regions, and prevent undue control of banking assets by a few entities.

The nationalisation of banks has proven effective in channeling credit to priority sectors like agriculture, micro, small, and medium-sized businesses, and industry. Public sector banks (PSBs) have been instrumental in promoting financial inclusion, mobilising savings, and supporting vital sectors, playing a pivotal role in the country’s economic growth and providing banking services to millions of Indians.

Despite their significant contributions, PSBs face several challenges, including higher exposure to stressed assets compared to private sector banks due to mandated priority sector lending. The AIBOC emphasizes the need for a level playing field when evaluating the performance of PSBs and private banks.

Furthermore, the government, as the largest shareholder in PSBs, benefits from the dividends paid by these banks. The AIBOC calls for specific norms and benchmarks tailored to PSBs to ensure fair evaluations.

Concerns over the possible privatization of PSBs and the impact on the welfare of the majority of the population are addressed. The AIBOC advocates for supporting an ideology that prioritizes the well-being of a larger human population and upholding the principles of a welfare state and equality.

On the occasion of the 55th Bank Nationalisation Day, the AIBOC urges policymakers, regulators, and stakeholders to recognize the invaluable contributions of public sector banks and their employees. The Confederation highlights the pressing need to address employees’ legitimate demands, such as better work conditions, compensation, and pension revisions.

To promote awareness and garner support, AIBOC has planned a week-long series of nationwide campaigns and initiatives, including press releases, informational reports, poster displays, social media campaigns, and community-oriented activities.

The Confederation calls for unity among the banking community, government, and stakeholders to build a sustainable, inclusive, and resilient banking system that serves the best interests of the nation and its citizens, fulfilling the ambition of reducing income inequality as envisioned by the Constitution.