Sitharaman defends government’s bank privatisation move as bank strike enter day two

The finance minister at the cabinet briefing addressing media

The country witnessed the second day of the bank union strike called by nine bank unions to protest the government's policy to privatise more public sector lenders. Banking services were halted across the country barring a few banks such as ICICI bank, HDFC bank and Axis bank which continued with their operations.

Some of the protesting bank employees have gone ahead and expressed interest in persisting with the strike until the government withdraws its proposal for privatisation and disinvestment.

The Finance Minister, Nirmala Sitharaman in cabinet briefing tried assuring the bank employees that the government would ensure protection of the interest of employees even after privatisation.“It’s not right to say that every government bank is being sold-off. We will absolutely be protective of employees who have given decades to these banks…their salary, their pensions will be protected,” she said.

Rahul Gandhi took to twitter to express his opinion on the ongoing strike, “Government of India (GOI) is privatising profit and nationalising loss. Selling PSBs to Modicronies gravely compromises India's financial security. I stand in solidarity with the striking bank employees," he said.

The Finance minister did not let this attack slip and fired back,"Rahul Gandhi has probably outsourced his comments to outsiders. These two liners do not help. I would want him in engage in serious discussion… Rahul Gandhi should think, do homework first and then level allegations against us," the minister said.“The Congress,” she added, "nationalised corruption... In UPA they were privatising public money".

She went on to double on the assurance and said, "The decision of Privatization is a well thought out decision. We want Banks to get more equity... We want banks to meet the aspirations of the country". She further on added, "Public sector enterprise policy very clearly says that we will continue with PSBs. Interests of the workers will absolutely be protected."

The deadline for the whole divestment was earlier announced to be on the completion of the Financial Year of 2022. It will be interesting to watch how the minister’s assurance plays out amongst the banking unions and until when the strike will continue.