All India Bank Employees' Association has said that it is opposed to the share sale of public sector banks’ capital to employees as it sees this as an attempt by the government to dilute its shareholding in these banks and boost its privatisation agenda.
The association said that it has been opposing the sale of banks’ shares to private entities, both corporate and individuals. In the same breath, as a trade union, it is opposed to the sale of banks’ capital to employees.
The union emphasised that the Government should not dilute its stake in the banks in any manner and adequate capital must be subscribed by it whenever warranted.
Referring to managements' advocacy that if employees would purchase the share capital of the banks, there would be a sense of belonging to the bank, a better sense of commitment to the bank and also a sense of ownership, C H Venkatachalam, General Secretary, said that any part of capital that is not subscribed by the Government will dilute the ownership status of the banks and sale of shares to employees is no different.
He said: "Can we believe that by buying a few shares of the bank, we can feel that we are owners of the bank? Will the Government or managements really like the idea of employees becoming owners of the bank?
"In fact they do not want even workers’ participation. For the past 4 years, the post of employee director and officer director in all the banks is not appointed. They do not want us to be even a director of the bank and they want to us be owners!"
"As employees, we do owe a sense of commitment to our duties and responsibilities but we do not believe that by purchasing some shares of the bank, we will be more committed to the bank. We are always loyal and committed to the banks, even without owning some shares of the bank.
"We want our banks to progress and come out of the present problems created by huge bad loans. That is the only problem facing the banks. Buying some shares of the bank will not help to recover these bad loans. Tough action should be taken to recover the bad loans," he said.
If bad loans are recovered, then there will be automatic generation of capital, Venkatchalam said, adding that buying some shares of the banks by the staff is not necessary for the progress of their banks.
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