Several bank associations held a demonstration in front of the State Bank of Patiala head office here on Friday, opposing RBI's PJ Nayak panel report on the privatisation of public sector banks (PSBs).
SK Gautam, joint secretary, All-India Bank Employees Association (AIBEA)said that the RBI appointed a committee with P J Nayak (former chairman of Axis Bank) as its chairman which has submitted its report which was detrimental to the interests of banks and banks employees.
He said the committee had recommended that the government's capital to be reduced to 50%, merger of public sector banks (PSB), keep the PSB out of central vigilance committee, ownership of government banks should be transferred to an investment company, voting rights of shareholders should be increased from 10 % to 26 % and other recommendations.
"It is not wise to hand over the banks to the private sector which is responsible for bad loans. It is very surprising that in the past one decade, when world over many private banks have collapsed, in India attempts are being made to hand over government banks to private hands," he said.
Yadvinder Gupta, secretary of the Punjab Bank Employees Federation, said when banks were holding more than ` 78 lakh crores of public money and hard-earned savings of the people, attempts to hand over the banks to private hands would be preposterous and retrograde.
"We totally oppose these recommendations in the interest of the country and people," he said.