Members of the All India Bank Employees' Association (AIBEA) in Chennai and United Forum of Bank Unions in New Delhi on Saturday, 31 August, staged a protest in against the Centre's decision to merge 10 public sector banks into four entities.
Union protests in Delhi.
(Photo: ANI)
In Chennai, Employees of several public and private sector banks wore black badges as a mark of protest to the government’s decision.
The association's General Secretary CH Venkatachalam said the government's move was “ill-timed” and needs a review.
On Friday, the United Forum of Bank Unions called for demonstrations across the country on Saturday, a top banking union leader said, according to IANS.
The UFBU is the umbrella body of nine banking sector trade unions.
A rally opposing it was also planned by the association, Venkatachalam told PTI.
Government’s Proposals ‘Unmindful’
Bank unions opposed the mega merger of ten state-run banks into four saying the move is bereft of logic and lacks any rationale.
“The proposals which the government has moved are unmindful since it has no logic or rationale. Neither, it is the case that a weak bank is merged with a strong one nor geographically compatible banks are being merged,” AIBEA said in a statement, according to PTI.
The unions further said United Bank, headquartered in Kolkata is being merged with the Delhi-based Punjab National Bank, while Syndicate Bank is being merged with Canara having network in same geographical areas.
The unions said the government has come out with merger proposals at a time when the economy is passing through a rough weather-as the announcements came an hour before the government reported that the economy slowed to the lowest level in 25 quarters in the April-June period clipping at a low 5 percent.
"At this point in time, when stability is the need of the hour, the government itself is attempting to destabilise the finance and economy," the statement said.
The union said in the process of merger, SBI had closed over 1,000 branches and in case of Bank of Baroda, more than 500 branches are being closed, according to PTI.
"On one side the government wants to implement Jan Dhan, but how it is possible to implement the same by closing down the branches?" they wondered and announced that they will observe black day on Saturday and threatened to launch more protests go ahead.
FM Proposes Mergers of Public Sector Banks
While announcing the merger, finance minister Nirmala Sitharaman said the plan is to create fewer but stronger global-sized banks for building a USD 5 trillion economy.
The four mergers are Punjab National Bank will amalgamate with itself smaller peers Oriental Bank of Commerce and United Bank of India, to create the nation's second- largest lender; Syndicate Bank will merge with Canara Bank; Union Bank of India will take over Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.
The move will bring down the number of state-run banks to 12 from 19 after the merger of Dena Bank and Vijaya Bank with Bank of Baroda effective April 2019.
As of April 20-17, there were 27 state-run banks in the country, right before the SBI merged with itself its five associate banks along with the Bharatiya Mahila Bank.
(With inputs from PTI and IANS.)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)