Mumbai, Nov 4: The Government intention of bringing down its stake in public sector banks below 51 per cent and paving the way for introducing voluntary retirement schemes (VRS) in the banks have raised the hackles of 15 lakh bank and insurance employees throughout the country.A joint meeting of all the bank unions, LIC and GIC will be held in Mumbai on November 10 to decide the joint course of action on the Governmnt's policy, All India LIC Employees Federation said in a statement here.
Union finance secretary (banking) Devi Dayal has said the Government would soon amend the banking laws to allow privatisation of public sector banks to reduce its equity below 51 per cent and it would also put in place a policy on VRS in nationalised banks.
The federation statement said bank and insurance employees "are poised for a grim battle" to protest the government's decision, which also includes opening up of the insurance sector.
The amendments are expected to come in the next session of Parliament.
Currently, other PSU companies have a policy on VRS and the policy for banks would be along similar lines.
The verma committee report on weak public sector banks has also recommnded VRS as a means of bringing down costs in the banking sector.
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