RURAL BANKS...PRIVATIZATION

Mumbai, March 14, (way2newstv.in):

Rural banks privatization. The government is rapidly stepping up the privatization of banks. This process was originally decided to start with rural banks. As part of this, the sector is ready to hire up to 49% of the country's rural banks in the private sector. Besides, the initial public offer (IPO) in the 3-4 months will raise funds from stock markets. It also issues NABARD orders for rural banks to be ready for this. However, there is strong opposition from job unions on this privatization. The rural banks have begun to provide banking services to small, marginal farmers, artisans and people below the poverty line. Telangana, Andhra Pradesh, Andhra Pradesh Gramine Vikas (APGVB), Telangana (TGB), Andhra Pragati (APGB), Chaitanya Godavari (CGGB) and Saptagiri (SBB) are the rural banks. They have 2,160 branches. This includes 960 branches in Telangana and the remaining AP. State Bank of India (SBI), Indian Bank Sponsor Bank for Andhra Bank and SBB for Syndicate Bank for APGB, ADGVB and TGB. 50 per cent in rural banks, 35 per cent of the sponsor banks and 15 per cent of the state government.

RURAL BANKS...PRIVATIZATION

Telangana Regional Rural Bank Employees Association (APRBEA) general secretary S.Venkateswar Reddy said that the present government will reduce the target of banking services to those below the poverty line. The legislative amendment enabling private individuals or companies to acquire a stake of up to 49 percent. After the stake sale, the Center and Sponsor's share of the share of the 51% That means that now 15 per cent of the state governments will have a share. Rural Banks are the only commercial banks in the hands of state governments. However, banking sources have warned that these privatizations will not be represented by states. There are 8,600 employees in AP and Telangana rural banks. Apart from these, 2,400 daily laborers are working. In Tamil Nadu, rural banks account for 1.1 crore customers. Compared to any other state in the country, the rural bank debt and savings ratio is equal to 40-45 per cent in the Southern States, said Venkateswar Reddy. Deposits and debt in both Andhra Pradesh and Telangana states are equal. In the AP, Telangana accounts for Rs 33,000 crore deposits of Rs 33-34 thousand crore.