Merger And Consolidation of Banks is Now Expansion of Bank

Bank employees flay Centre for favouring non-banking financial companies

TNN | Jul 22, 2012, 10.08PM IST

AGARTALA: Bank Employees Federation of India (BEFI) has accused Centre of promoting non banking financial companies (NBFC) and helping them in expansion of business in the rural areas and preventing penetration of nationalized banks. Addressing the media on Saturday, BEFI general secretary Pradip Biswas alleged that within three months of the announcement regarding opening of rural banks in the last budget, as many as 30,000 branches of different nationalized banks became malfunctioned across the country.


On the other hand, bank regulators are allowing the NBFCs and micro-finance companies to expand their business in villages, he said. Biswas alleged that these NBFCs were virtually cheating the poor people and those from the marginal income groups.


Biswas demanded that Banking Act (Amendment) Bill, 2011 be withdrawn while pointing out that the proposed Bill would enable foreign companies to handle the management and working procedures of at least 12 private Indian banks including Indus Ind Bank, ICICI Bank, Yes Bank, Axix Bank and HDFC Bank.


"Centre is allowing big corporate giants to open private banks in India, which ultimately will lead to the situation that prevailed before the nationalization of banks in 1969," Biswas apprehended. He advised that the recommendations of Khandalwal Committee on bank reforms be revoked. He said the nationwide bank strike on July 25-26 had been postponed, as Indian Bank Association and management has called them for a meeting on Monday to discuss on their four-points demand and if the meeting fails to resolve the issues, the banks will go on a two-day strike from August 22.

http://timesofindia.indiatimes.com/city/guwahati/Bank-employees-flay-Centre-for-favouring-non-banking-financial-companies/articleshow/15096302.cms

Branch Expansion And Closure of Loss Making Branches Cannot Run Together

http://danendrajain.blogspot.in/2012/05/branch-expansion-and-closure-of-loss.html

Why merger of banks is needed

Government has been building pressure on banks to make best efforts for merger and acquisition. But I am unable to understand the motive behind it in Indian perspective.Finance Minister has said that through the consolidation, financial powers of banks will improve and they will not only be able to augment efficiency and help in GDP growth but also get success in competing with International big banks. 

Here the million dollar question arises whether Late Indira Gandhi had nationalized banks to compete with International banks, whether banks are meant to extend credit in thousands of crores to a few hundred merchants or manufacturers only?

Have government forgotten the social objective of banks completely?

Is it possible for a government to survive by discarding the interest of common men, farmers, small traders in India? 

http://www.lkadvani.in/forum/viewtopic.php?f=9&t=6839#p23607