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Bank union opposes 49 per cent FDI in banks

The All India Bank Officers' Confederation on Friday opposed the government policy to allow foreign direct investment to the tune of 49 per cent in Indian private banks.

In a statement issued in Calcutta, the bank union said that this relaxation would help foreign entities to acquire Indian banks, adding that ABN Amro, Citibank, HSBC, and Standard Chartered Grindlays had already expressed interest earlier in this regard.

The government's decision would have a far-reaching impact on the Indian banking sector, the AIBOC said, adding that it would intensify protests opposing the move.

As banks play a major role in mobilising domestic savings in the Indian economy, acquisition by foreign banks would divert resources away from the priority sector to other areas.

The AIBOC said that the decision is anti-people and not in the interest of the country's economy.

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