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Canara Bank staff to strike work on Friday

By Our Staff Correspondent

CHITRADURGA NOV. 12. Employees of Canara Bank here will participate in the countrywide strike called by the All-India Canara Bank Staff Union on Friday in protest against the reported move of the Centre to privatise the bank.

A press release by the district unit of the union said the employees of all the branches of the bank in the district would converge in front of the main branch on B. D. Road, and take out a procession and stage a dharna. The release claimed that the bank had scheduled to come out with an initial public offer on November 18. It had planned to raise Rs. 385 crore by selling 11 crore shares, each with a face value of Rs. 10 and premium of Rs. 25. But the bank had enough capital and it was not lagging behind in capital adequacy norms.

The Union Budget had aid that foreign financial institutions would be permitted to hold shares in private and public sector banks with a limit of 33 per cent of the capital. This provision helped a foreign bank operating in India take full control of Vyasya Bank.

Though the Government was claiming that it was only disinvesting the shares of public sector banks and it would continue to control the banks, its intention was nothing but privatisation. The release termed the disinvestment process, "backdoor entry for privatisation.''

The present capital and the reserves of the bank totalled Rs. 3,471 crores. There was no need for additional cash flow for business purposes or for capital adequacy. The employees at Chitradurga, Hiriyur, and Challakere would hold demonstrations in front of their branches on Wednesday in protest against the privatisation move of the Government, it said.

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