Merging 10 banks with 4 is Cold Blooded Murder, AIBOC and UFBU Stage Protest Against Merger of Banks
Mangaluru: The All India Bank Officers’ Confederation in association with the United Forum of Bank Unions staged a protest against the decision of the finance minister Nirmala Sitharaman to merge 10 banks with 4 banks in front of the Corporation bank head office, Pandeshwar here on August 31.
Addressing the protesters President of AIBOC P R Karanth said, “All India Bank Officers’ Confederation, the largest officers’ organization in the banking industry in the country, opposes the merger of several Public Sector Banks into 4-5 entities. This move will weaken the Public Sector Banking, encourage Private Sector Banks at the cost of Public Sector Banks and deprive the common citizens, the ease of banking”.
Karanth further said, “Recently, Vijaya Bank and Dena Bank were merged with the Bank of Baroda. A year earlier to that, the Associate Banks were merged with the State Bank of India. The experience of these mergers has not been very encouraging on the business front, customer service, NPA Management as well as the workforce. Without assessing the impact of the previous two mergers, the Central Government has brazenly proceeded with another and a bigger bout of merger – just to breast-beat its (so-called) achievement. The AIBOC has always maintained that the mergers are designed to reduce the number of Public Sector Banks as a prelude to the privatisation of the same at a later point of time. This is the larger agenda aimed at nullifying the nationalization of the banks done during 1969 and 1980 in the country’s economic interests”.
Karanth also said, “A large scale of the merger of branches – as had happened after the merger of Associate Banks with SBI – will adversely impact the ease of banking for the common public. Moreover, the customers of the smaller banks face neglect and lack of attention in the merged entity. The business of all the merged entities too will suffer enormously due to the time, energy and resources to be spent for setting the merged house in order, bring uniformity of rules of business and streamline the institutional structure and manpower deployment – post-merger, pan India. This will enable the private banks to encroach upon the PSB banking business. We strongly oppose the proposed merger of Public Sector Banks and demand the government to release a white paper on the operational fronts of previous two mergers. Appoint Officer Directors in all Public Sector Banks’ Boards. Provide enough capital to the Public Sector Banks, and involve the recognised unions – the major stakeholders in the Banks – before any such decision is proposed/taken”.
Addressing the protesters convenor of the Union Forum of Bank Unions Vincent D’Souza said, “Merger of Banks is cold-blooded murder. On August 30, the finance minister informed the nation that 10 Public sector banks (PNB) will be merged with 4 banks. The meaning that 6 banks will now get closed. The government may call it a merger but in reality, it is a cold-blooded murder of 6 banks. Because after the merger these 6 banks which have been built up over the years will disappear from the banking scenario. Nationalized banks are the pillars of our economy. In 1969 the banks were nationalized with a very clear social and economic objective of broad basing the economy and its development. In the last 50 years, the nationalized banks have made a phenomenal contribution in building up a strong economy with a visible social orientation. The government wants Sabke Saath, Sabka Vikas but cuts the lifeline of prosperity. The government talks about prosperity for all but by closing down 6 banks, 6 main arteries of the banking system are being cut off.”
Vincent further said, “The country is facing serious economic slowdown and downturn. Banks with their huge resources at their command can play a decisive role to revive the economy. Banks are facing problems due to the huge pile of bad loans. While the public sector banks made a total gross profit of Rs 150,000 crores for the year ended on March 31, 2019. Bank employees will oppose the proposed closure of these 6 banks.”
The vice president of AIBOC Satish Shetty also spoke on the occasion.