AIBOC marks 55 years of bank nationalisation, warns against privatisation

Srinagar, July 18: The All India Bank Officers' Confederation (AIBOC) celebrates the 55th anniversary of Bank Nationalisation Day, commemorating the landmark decision of July 19, 1969, which transformed Indian banking.

Representing 3.50 lakh officers across public, private, and regional rural banks, AIBOC reaffirms its commitment to public sector banking while raising concerns about recent privatisation efforts.

AIBOC criticizes the government's strategy of merging public sector banks (PSBs), reducing their number to 12, as a form of "backdoor privatization." The confederation argues that these mergers have led to a decline in PSBs' market share, with their share of total deposits falling from 66% in 2017-18 to 59% in December 2023.

The organization highlights ongoing challenges in the banking sector, including limited access to banking services in rural areas. Out of India's 600,000 villages, over 5 lakh remain unbanked, with only 74,000 villages having access to banking services. Additionally, 70% of the rural poor lack bank accounts, and 87% cannot access credit from formal sources.

AIBOC warns that the prioritization of larger clients by merged banks has reduced credit access for smaller businesses, forcing them towards non-banking financial companies (NBFCs) with higher interest rates. This situation has reportedly contributed to financial distress among farmers and small enterprises.

The confederation argues against privatisation, stating it shifts focus from social inclusion to profit maximization. Instead, AIBOC calls for the nationalization of all scheduled commercial banks and the merger of Regional Rural Banks with sponsor banks to promote inclusive growth.

To commemorate this historic day, AIBOC is organizing nationwide programs to highlight the role of PSBs in nation-building and to resist privatization moves. The organization maintains that despite challenges, PSBs continue to operate efficiently and play a crucial role in India's economic development.