Bank Union Strike: opposition on privatization of banks

by Psu Connect
Date: 23-02-21

At the latest, the government of India, Finance Minister Smt Nirmala Sitharaman announced the various privatization of different PSUs and two banks, apart from IDBI Bank.

New Delhi: After the announcement of privatizing two Public Sector Banks in the budget session 2021-2022 by finance minister Nirmala Sitharaman, bank unions decide to go on 2 days strike starting from 15 March 2021.

Employees of the government sectors are not so happy with this decision because they want to continue being government employees. This whole privatizing issue is making a big mess to big Public Sector undertakings, and that's why this situation is forcing the employees and bank unions to take this crucial step.

At the latest, the government of India, Finance Minister Smt Nirmala Sitharaman announced the various privatization of different PSUs and two banks, apart from IDBI Bank.

It is also noted that the privatization of IDBI Bank is very important if the government wants to get a good valuation while listing Life Insurance Corporation (LIC) of India. However, the prospective investors won’t like the idea of an insurance company owning a bank, almost one-fourth of whose loans have been defaulted on.

Comparing PSBs market value with the private banks reflects the lower market rate The combined market value of HDFC Bank’s shares is Rs 8.56 trillion (as of 18 February), whereas the market capitalization of all PSBs is around Rs6.41 trillion (excluding IDBI Bank, which is now categorized as a private bank). Of course, if we add up the assets of PSBs, they are a lot bigger than HDFC Banks.