Members in the Rajya Sabha today expressed concern over bad loans and "political influence" in the banking system, as a Congress MP asking the government to clarify its stand on privatisation or denationalisation of banks.
The explanation was sought by the Congress leader Jairam Ramesm while participating in a debate on the State Banks (Repeal and Amendment) Bill, 2017 which seeks to approve the merger of associate banks with the State Banks of India.
The bill was later passed by a voice vote.
Responding to the almost 2-hour debate, Minister of State for Finance Shiv Pratap Shukla said the merger would make SBI profitable, improve its working capital and enable it to offer better services to its customers.
Participating in the debate, Ramesh said "I would like the minister of state to give an authoritative statement on the behalf of the government that privatisation of banks or denationalisation of banks is not on government's agenda," Ramesh said while
He said, "We keep hearing from time to time that India requires lesser number of banks, banks should be merged. Sometime, we also hear that banks must be re-privatised."
The Congress leader was of the view that the merger of the banks must not be "a distressed marriage and a marriage between two unwilling partners."
Sukhendu Shekhar Roy (AITC) said "We are helpless. Merger has taken place. If this will continue, there will be a danger to our economy."
Observing that the government seems to be in a hurry to do things and comes to Parliament for ratification, CPI leader said "Why can't the government take Parliament into confidence? Why should government take decisions behind the back of Parliament, bypassing the Parliament and after that you come to the Parliament for ratification. Is it good for our democracy, government should think it over."
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