'Current reforms will ruin banking sector'

THIRUVANANTHAPURAM: The current reforms in the banking sector in the country are aimed to destroy the 'development-oriented' banking system, said Kerala State Planning Board vice-chairman V K Ramachandran.
"These reforms will lead to collapse of the Indian banking system which had achieved unparalleled growth in the global scenario," he said while inaugurating the 7th general council meeting of the State Banks Staff Union (Kerala chapter) here on Sunday.
The nationalization of banks and their successive role in the development of the society were India's major contributions to the global banking sector. "The very aim behind nationalization of banks was to bridge the gap between the rich and the poor. But, deviating from the aim, the banking sector now protects the interests of the rich and the private sector, and has backtracked from its social obligations," he said.
Elaborating on the 'unique characteristics of the Indian banking policy, which supported rural population, farmers and small-scale ventures', Ramachandran said the current reforms will prevent a 'balanced progress' of the country. He called for social interventions by banks and employees against poverty, malnutrition and diseases, and also against suppressions based on caste, religion and gender.
SBI chief general manager S Venkataraman, who was the chief guest on the occasion, said several big corporates were blocking the progress of the country by not repaying huge loans they had availed from public sector banks.
The general council meeting, with its slogan: 'Strengthen the public sector, ensure democratic banking', will conclude on Monday.