A recent press report said that State Bank of Travancore’s Staff Union has asked the Union government to withdraw the Banking Amendment Bill-2011 presented in the Lok Sabha as they feel it would undo the gains the banking sector had made through the nationalization of banks in 1969.
Reports said that the resolution passed at a three-day national conference said that the new Bill will water down the aims and objectives of the historic bank nationalization by the Indira Gandhi government in 1969. The resolution passed has said that the changes brought in the banking sector from 1991 by the successive Central government had affected the sector and that the reforms brought in the sector and the implementation of globalization policies are of serious consequences in the banking sector in the country.
According to reports, the resolution also said that the 2011 Bill is likely to speed up the merger of public sector banks and help the foreign and Indian shareholders to have more control over the public sector banks.
Earlier, a report said that banks are facing a slow down in their loan business due to the hike in interest rates. The hike in interest rates have made all loans including home loan, personal loan, vehicle loan, business loan etc costlier to the borrowers.