UFBU strongly opposes FM remarks on bank privatisation

Vijayawada: The United Forum of Bank Unions (UFBU), representing nine national-level trade unions of officers and workmen in public sector banks, strongly condemned Union finance minister Nirmala Sitharaman’s remarks at the Delhi School of Economics on November 4, which appeared to endorse bank privatisation.

In a statement here on Thursday, the UFBU — comprising AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, INBEF, NOBE and NOBO — expressed grave concern, stating that such views undermine India’s public sector banking system, a pillar of financial inclusion, rural development and economic stability for over five decades.

The forum highlighted the transformative impact of bank nationalisation in 1969, which expanded institutional credit to farmers, small traders, women, and marginalised sections. “Public banks enabled rural banking expansion, social lending, and crisis resilience,” it said.

Warning against privatisation, UFBU argued it would prioritise profits, leading to branch closures in unviable areas, higher charges, neglect of rural credit, and replacement of permanent staff with contractual workers.

This would jeopardise priority sector lending, agricultural finance, and schemes like Jan Dhan, DBT, and MGNREGA.

Citing failures of private banks like YES Bank, Global Trust Bank and Lakshmi Vilas Bank — rescued by public institutions — the UFBU cautioned that privatisation risks depositors’ savings and transfers public wealth to corporate hands.

Demanding a firm government assurance against privatisation, the forum urged strengthening public banks through capital, technology, and governance reforms. “Public sector banks are national assets. We will not let them be sold,” it declared.