|
Feb 5 2007 12:00AM
Unions flay SBI stake transfer
The officer and staff unions of the State Bank of India (SBI), thecountry's largest commercial bank, are working on a joint strategy tooppose the government's decision to acquire the Reserve Bank of India's59.73 per cent stake in the bank.The unions will be sending a joint letter to the government next week,outlining their reservations over the stake transfer and threatening anindefinite strike if their plea is ignored.The unions suspect that the move is a precursor to the government dilutingits stake in SBI.The government is to acquire Reserve Bank's stake in June 2007 in acash-less transaction, as part of a move to separate the central bank'sownership and regulatory functions.The move was approved by the Union Cabinet following a recommendation ofthe Narasimhan Committee on banking reforms.SBI has around 60,000 officials and 1.5 lakh clerical staff on its rolls.General Secretary G D Nadaf described the stake transfer as thegovernment's sinister design to amend the SBI Act and subsequentlydilute its stake in the bank.There is no need to transfer the RBI stake in SBI to the government foldas it will not serve any purpose, he said, adding, The move is being madeon account of imaginary problems shown by the Narsimhan Committee, whichhad also proposed massive consolidation among banks.|
|