PSBs Must Takeover YES Bank, All Other Private Banks: CPI
The National Secretariat of the Communist Party of the India issued following statement on March 07, 2020 urging the central government to immediately direct the public sector banks to take over Yes Bank and all other private banks:
The National Secretariat of the Communist Party of India urges the central government to immediately direct the public sector banks to take over Yes Bank and all other private banks. The Party draws the attention of the government to the fact that the country’s economy is not doing well and banks have to play an important catalystic role to revive the economy. Also the people’s confidence in the banking system, which is of paramount importance, has to be kept intact, as the people’s faith is rudely shaken and people who have deposited their hard-earned savings with this Bank are now in panic.
It may be recalled here that in the Economic Survey presented by the government on the eve of this year’s Budget, the government’s chief economic advisor Dr. Krishnamoorthy Subramanian stated that the private sector banks are more efficient and Re 1 investment in a private bank will bring gains of nine paise whereas Re1 investment in public sector bank will lead to a loss of 23 paise. Within a month, the government and the RBI have realised that YES Bank, one of the private sector banks is not doing well and its board has been superseded. Where is the efficiency of the private bank?
Party in the light of the above demands a thorough probe into the role of RBI in its slackness in supervision of the banks and also immediately announce the takeover of YES Bank by a public sector bank in order to protect the interests of the depositors. Stern action should also be taken against those responsible for the mismanagement of the bank.
With YES bank and other private banks getting more and more exposed, the Party urges the government to take over all the existing private sector banks in the larger interest of the banking public and our economy as those banks have been playing with public money.