A great hue and cry among financial sector for SBI being named as ‘Bomb Maker’.
State Bank of India (SBI) has been named in a ‘Hall of Shame’ list of 158 banking and financial institutions globally all of them have invested billions of dollars in companies making cluster bombs.
SBI is the only Indian entity on the list, apart from global giants like JP Morgan, Barclays, Bank of America and Credit Suisse that invested over $28 billion in seven producers of cluster munitions between June 2012 and April 2016, according to a report by Dutch campaign group PAX.
While SBI said it “always works in accordance with local laws and regulations” and there is “no prohibition, whatsoever either in US or in India to finance such commercial projects”, PAX said the investments have been made in these cluster bomb producers despite an international ban.
In its 275-page report, PAX said the Convention on Cluster Munitions (CCM) categorically bans use, production, stockpiling and transfer of cluster munitions.
This convention was signed by 94 countries in 2008 and it came into force from August 1, 2010. Which India is not a party in that agreement hence SBI as state own Bank not violating any Indian Law or International Law.
Most financial institutions named in the Pax list are from countries that have not signed this convention. However, there are also banks from the countries that have adopted this treaty over years.
The maximum number of 74 banks is from the US, followed by China (29) and South Korea (26).
So when India is not in the agreement where is the fault in part of SBI. Is it not an attempt to damage the reputation of SBI.
When SBI chief is in the possible list of RBI next Governor is it a larger picture to damage candidature of Arundhati for the next RBI head? Or just a coincidence.
Thanks to Raghuram Rajan… His dashing looks and flamboyance made banks FLY… https://t.co/4HH5OMFsFW
— MediaCrooks (@mediacrooks) June 19, 2016