Bank unions up in arms against Nayak panel report on privatisation

Major bank workers' unions are on the warpath against the Nayak Committee report, and have asked the government to reject the recommendations on bank privatisation, saying this would be against the national interest.

"The report of the committee, which was appointed by the Reserve Bank of India governor, deserves to be rejected by all authorities," All India Bank Officers Association (AIBOA) general gecretary S Nagarajan said.

Nagarajan also said that banking should also be brought under a Banking Audit Commission similar to the Comptroller & Auditor General of India.

"We have also written to the President of India seeking his immediate remedial action to safeguard the public sector banking from ever growing bad loans due to various external factors," he told reporters in Jaipur on Sunday today.

The committee headed by P J Nayak, former chairman of AXIS Bank, has recommended mainly privatisation of public sector banks by reducing the government equity below 51 per cent, merger of banks, and repealing bank nationalisation.