Members of All India Bank Employees’ Association stage protest against the Government’s decision of merging 10 PSU banks into 4
The Members of the All India Bank Employees’ Association (AIBEA), the oldest and largest national Trade Union centre of bank employees in India staged protest on Saturday, August 31, 2019, against the Centre’s move to merge 10 public sector banks into 4 banks.
The members of AIBEA wore black badges to work today as a part of the protest. They have termed the move as illogical and irrational.
Expressing their disappointment, AIBEA issued a media statement which read, “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,” All-India Bank Employees Association said in a statement.” The statement further added, “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 General Secretary of AIBEA – C.H. Venkatachalam said that the move is ill timed and should be reviewed. He further said that the merger would mean closure of 6 banks.
Speaking on the occasion, Venkatachalam said, “Government may call it a merger. Six banks which have been built up over the years will disappear from banking scenario.”
Besides, the Banks Union is all set to meet in New Delhi on September 11, 2019 where they will decide on whether they should go on strike.
Prior to this, the Finance Minister of India – Nirmala Sitharaman had announced on Friday, August 30, 2019 that it will merge 10 Public Sector Banks (PSBs) into 4, to create fewer and stronger global-sized banks. The Finance Minister believes that by doing so, the Government will revive the economy.
As per the announcement, Punjab National Bank (PNB) will amalgamate with Oriental Bank of Commerce (OBC) and United Bank of India, to create the India’s 2nd largest lender. Syndicate Bank will merge with Canara Bank to create one entity. Union Bank of India will take over Andhra Bank and Corporation Bank to become a new entity. Indian Bank will merge with Allahabad Bank.
The Finance Minister had said that banks will be provided with adequate capital for growth. The move will bring down the number of State-run banks in India to 12 from 19, including the merger of Dena Bank and Vijaya Bank with Bank of Baroda effective April 2019. Last week, Sitharaman had announced to infuse Rs. 70,000 crores in PSBs for the current fiscal.
