THIRUVANANTHAPURAM: The All India Bank Officers’ Confederation (AIBOC) has strongly protested the state government’s decision to park funds under the Kerala Infrastructure Investment Fund Board (KIIFB) in new-gen private banks rather than public sector banks.
The AIBOC state committee has urged the government to reverse its decision and continue its proclaimed policy of preferring public sector banks for government business. The demand comes in the wake of the Opposition criticising Finance Minister T M Thomas Isaac for having invested KIIFB funds to the tune of Rs 1,224 crore in private banks, including Yes Bank, IndusInd Bank and Kotak Mahindra Bank.
“While the entire banking development needs of the state are being catered to by public sector banks, old private sector banks and the cooperative sector, the state government decision to offer lucrative, high-ticket, non-manpower intensive business to select new-gen banks is totally unjustified,” said AIBOC state secretary Abraham Shaji John.
The five major new-gen private banks together account for only 7.7 per cent of bank deposits and 11.7 per cent of advances in the state. The balance deposits and advances are handled by public sector banks, old private sector banks and cooperative banks.
While public sector banks had 28 per cent and 25 per cent of their outstanding credit in agriculture and other priority sector portfolios respectively, the share of the five new-gen banks is below 5 per cent, the AIBOC said.