Bank unions are reportedly planning to go on strike on 15 and 16 March to stand against the planned privatization of public sector banks. It has been noticed that the budget, finance minister Nirmala Sitharaman has announced plans to privatize two PSBs, apart from IDBI Banks.
The privatization of IDBI Bank is vital only if the government wants to get a good valuation during listing for a Life Insurance Corporation of India. Prospective investors would go against the idea of an insurance company owning a bank for almost one-fourth of whose loans have been defaulted on.
Moreover, it has been also noticed that the history of capitalism is replete with people protesting whenever the status quo has been disturbed. The strike plan of the bank union has not been a surprise for the bankers.
James Hargreaves, an illiterate English cocoon weaver, lived in the 18th century. Hargreaves invented the spinning Jenny as one of the very first inventions that led to the industrial revolution.
Daniel Susskind also makes an announcement writing that this was a machine that allowed the thread to be spun from cotton far more smoothly than with human hands alone. It has led to job losses among individuals who were used to spin cotton. Moreover, when word spread about what Hargreaves was on the mark, his neighbors broke in and destroyed the machine.
The time was never different. The incident that happened at the dawn of capitalism is taking place at the present. The government has opted to privatize two PSBs disturbs the status quo of the employees of public sector banking. They are looking forward to continuing to be government employees for the coming future.
The performance of PSBs has not been worth the money that the government has ever invested. The Economic Survey of 2019-2020 declares that over Rs. 4.3 trillion of taxpayer money is invested as government equity in PSBs.
