AIBEA Press Release – Condemn the Demand of ASSOCHAM to Pravatise Banks

AIBEA Press Release – Condemn the Demand of ASSOCHAM to Pravatise Banks

Central Office:”PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522 Fax: 4500 2191, 2535 8853 &




• We condemn the demand of ASSOCHAM to pravatise Banks
• Let them advise their members to repay the Bank loans
• Assocham should condemn Nirav Modi for his cheating the Banks

It is very strange and interesting that the Associated Chamber of Commerce, the mouthpiece of the industrialists and business houses has suggested privatization of banks in view of the recent fraud in PNB.
They have conveniently forgotten the track record of private banks in our country.

No. of Private Banks Failed, Amalgamated, ceased to function/transferred their liabilities and Assets, went into liquidation between 1948 and 1968

1948 45
1949 55
1950 45
1951 60
1952 31
1953 31
1954 27
1955 29
1956 28
1957 30
1958 28
1959 38
1960 26
1961 47
1962 33
1963 20
1964 82
1965 42
1966 17
1967 15
1968 7
In 20 years 736 private Banks

Private Banks put under moratorium in public interest due mismanagement and gone out of existence from 1969

1969 1.Bank of Bihar
1970 2.National Bank of Lahore
1971 3.Eastern Bank
1974 4.Krishnarao Baldeo Bank
1976 5.Belgaum Bank
1985 6.Lakshmi Commercial Bank
1986 7.Miraj State Bank
1986 8.Hindustan Commercial Bank
1990 9.Traders Bank Ltd.
1990 10.Bank of Tamilnad
1990 11.Bank of Thanjavur
1991 12.Parur Central bank
1991 13.Purbanchal Bank
1993 14.Bank of Karad Ltd
1995 15.Kashinath Seth Bank
1997 16.Punjab Co-operative Bank Ltd
1997 17.Bari Doab Bank Ltd
1999 18.Bareilly Bank Ltd.
1999 19.20th Century Finance Corporation Ltd.
1999 20.British Bank of Middle East
1999 21.Sikkim Bank Limited
2000 22.Times Bank Ltd
2001 23.Bank of Madura
2002 24.Benaras State Bank Ltd.
2003 25.Nedungadi Bank Ltd
2004 26.South Gujarat Local Area Bank
2004 27.Bank Muscat SAOG
2004 28.Global Trust Bank Ltd.
2006 29.Bank of Punjab
2006 30.Ganesh bank of Kurundwad
2006 31.UFJ Bank Ltd
2007 32.United Western Bank
2007 33.Lord Krishna Bank
2007 34.Sangli Bank
2007 35.Bharat Overseas Bank
2008 36.Centurion bank of Punjab

If private banks are really efficient, why these Banks were closed down and merged with others. Most of these banks were merged with public sector banks. PSBs have become the Neelakana Mahadev to swallow the poison of failure of many private banks and it is funny that Assocham is asking PSBs to be privatized now. We understand their greed but they cannot claim that private banks are more efficient.

Secondly, take the alarmingly increasing bad loans in Banks. Who are the delinquents and who are the defaulters? Are all of them not private companies, industrialists and corporate houses? 12 cases of NAPs have been referred to NCLT for insolvency and bankruptcy proceedings involving Rs. 253,000 crores. Who are they? Is it their efficiency? Should banks be privatized and handed over to these people?

In the PNB fraud, no doubt there is an unpardonable sin on part of those officials who have gone out of the way to favour Nirav Modi. But who has tempted them and influenced them? Is it not private corporate giant Nirav Modi? Take any major fraud in our country. One will see the hand of private corporates in it.
Let them not forget that bulk of the loans given by public sector banks are to private corporate houses. If public sector banks are not efficient, why do they avail these loans from PSBs and why have not taken such loans from private banks.
Devil should not quote scriptures. We feel to advice Assocham to ask the private sector corporate defaulters to repay the bank loans to the PSBs and condemn NIMO for the fraud he has committed on PNB.



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