Bank Mergers may Lead to Further Deterioration of Country’s Economy
Mangaluru: The RBI has already agreed that the Country is facing Economic recession. The measures that are taken by the Government show that the Government is also endorsing the view of RBI.
But if one goes through the announcement of Finance Minister to merge certain Banks, it makes one to feel that this measure is very likely to increase the economic recession that is already prevalent.
Certain economic experts while placing certain suggestions to face the recession suggest that the creation of more jobs is one of the main measures to combat the recession. By the merger of Banks, so many of the Bank branches are likely to close, and thus not only the bank avenue of creating new jobs is closed, but also the existing employees are also likely to lose their jobs. Thus it is clear that the mergers would surely add fire to the existing economic recession.
Nonperforming assets i.e. NPAs of Banks are increasing and thus Banks existence itself is in stake. The need of the hour is to pass certain laws (like making non-repayment of dues of Banks as a criminal offence) that are necessary to recover the bad loans or NPAs. Instead, the Government taking such measures like the merger of Banks which is very likely to affect very badly the recovery of NPAs.
We have already seen the difficulties that were faced by the customers that too the rural customers during the merger of subsidiary banks with State Bank of India. Once again the customers are the sufferers.
The mergers may help the big corporate customers and the country’s economy and the citizens are very likely to affect badly. So the DK and Udupi district unit the Communist Party of India (CPI) oppose the merger of the Banks. We are also planning a series of programmes to pressurize the Government to do away with such measures.
