There Will No Job Loss Due to Bank Mergers: Fin Min Sitharaman

The All India Bank Employees Union has said the amalgamation would lead to closure of banks besides job losses.

(Photo: PTI)

Finance Minister Nirmala Sitharaman on Sunday, 1 September, allayed fears of job losses following the proposed merger of public sector banks, saying not even one employee shall be removed following the amalgamation.

"Absolutely, ill informed. I want to assure every union in everyone of these banks to please recall what I have said last Friday. When we spoke about amalgamation of banks I have very clearly underlined the fact that there shall not be one employee removed. Not at all", she told reporters in Chennai.

She was replying to a question on the bank employees unions opposing the merger plan on the ground it would lead to loss of jobs.

Sitharaman on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as the government looked to boost economic growth from a five-year low.

Responding to the government's plan, the All India Bank Employees Union has said the amalgamation would lead to closure of banks besides job losses.