WHY AIBEA DEMANDS PARLIAMENTARY PROBE
FROM THE REPORT ISSUED BY
ALL INDIA BANK EMPLOYEES’ ASSOCIATION, CHENNAI
WHY AIBEA DEMANDS PARLIAMENTARY PROBE INTO THE AFFAIRS OF
GLOBAL TRUST BANK’S FAILURE.
By C.H.VENKATACHALAM, GENERAL SECRETARY, AIBEA.
The recent collapse of the so called scion of the ‘new generation’ private bank – Global Trust Bank has thrown up many important issues and raised many questions. In the wake of liberalization process, the RBI gave licenses for some new private Banks. One of them was the Global Trust Bank. The Bank was inaugurated by the then Finance Minister Mr.Manmohan Singh in October 1994. So much of the euphoria was created as though something great had descended on the banking scenario. But within a decade, this Bank which started with a big bang has ended as a whimper.
In the last one decade of liberalization process in banking sector, we have observed that not withstanding the open prejudice of the Government against the public sector bank and the open patronage to the private banks, more than a dozen of the private banks had failed.
1. Bank of Cochin
2. Lakshmi Commercial Bank
3. Hindustan Commercial Bank
4. Bank of Bihar
5. Miraj State Bank
6. Traders Bank
7. Bank of Tamilnadu
8. Bank of Thanjavur
9. Parur Central Bank
10. Purbanchal Bank
11. Bareily Banking Corporation
12. Beneras State Bank
13. Bank of Karad
14. United Industrial Bank
15. Sikkim Bank
16. Punjab Co-op Bank
17. Nedungadi Bank
- all these were private Banks and yet they failed. These failures nailed the propaganda that private sector banking is all about efficiency.
But the collapse of GTB has totally exposed the myth of “efficient Private Sector Banking”. It has also upset the advocates of the glory of the New Generation Private Banks. More than this, today we see an unusual haste to bury the entire episode under the carpet as just yet another bank failure.
Mr.Ramesh Gelli, the brain behind the GTB and described as a Super Banker was conferred with Padmasri Award by the Government for his brilliance in banking entrepreneurship. Today everyone knows that it was he who was responsible for the collapse of the Bank by his links with the scamster Ketan Parekh.
What action – criminal and civil – should be taken against him has to be addressed by the Government. Banking public demand an answer.
Many other important issues come to the fore.
ALL INDIA BANK EMPLOYEES’ ASSOCIATION, CHENNAI
WHY AIBEA DEMANDS PARLIAMENTARY PROBE INTO THE AFFAIRS OF
GLOBAL TRUST BANK’S FAILURE.
By C.H.VENKATACHALAM, GENERAL SECRETARY, AIBEA.
The recent collapse of the so called scion of the ‘new generation’ private bank – Global Trust Bank has thrown up many important issues and raised many questions. In the wake of liberalization process, the RBI gave licenses for some new private Banks. One of them was the Global Trust Bank. The Bank was inaugurated by the then Finance Minister Mr.Manmohan Singh in October 1994. So much of the euphoria was created as though something great had descended on the banking scenario. But within a decade, this Bank which started with a big bang has ended as a whimper.
In the last one decade of liberalization process in banking sector, we have observed that not withstanding the open prejudice of the Government against the public sector bank and the open patronage to the private banks, more than a dozen of the private banks had failed.
1. Bank of Cochin
2. Lakshmi Commercial Bank
3. Hindustan Commercial Bank
4. Bank of Bihar
5. Miraj State Bank
6. Traders Bank
7. Bank of Tamilnadu
8. Bank of Thanjavur
9. Parur Central Bank
10. Purbanchal Bank
11. Bareily Banking Corporation
12. Beneras State Bank
13. Bank of Karad
14. United Industrial Bank
15. Sikkim Bank
16. Punjab Co-op Bank
17. Nedungadi Bank
- all these were private Banks and yet they failed. These failures nailed the propaganda that private sector banking is all about efficiency.
But the collapse of GTB has totally exposed the myth of “efficient Private Sector Banking”. It has also upset the advocates of the glory of the New Generation Private Banks. More than this, today we see an unusual haste to bury the entire episode under the carpet as just yet another bank failure.
Mr.Ramesh Gelli, the brain behind the GTB and described as a Super Banker was conferred with Padmasri Award by the Government for his brilliance in banking entrepreneurship. Today everyone knows that it was he who was responsible for the collapse of the Bank by his links with the scamster Ketan Parekh.
What action – criminal and civil – should be taken against him has to be addressed by the Government. Banking public demand an answer.
Many other important issues come to the fore.
posted by VALUE PLUS @ 6:37 AM
0 Comments:
Post a Comment
<< Home