Bank Unions to Hold Demonstrations Across India Today to Protest Against the Merger of BanksVijayan Sankar (Author) Published Date : Aug 31, 2019 10:46 IST
Bank unions to hold demonstrations across India today to protest against the merger of banks
The UFBU and AIBEA bank unions which include most of the banking staff in India will held demonstrations across India to protest against the bank mergers. C H Venkatachalam of AIBEA confirmed of massive protests today wearing black badges. It is against yesterday's announcement of Finance Minister Nirmala Sitaraman to merge ten public sector banks to four banks.
Finance Minister merges 10 PSBs to 4 bringing down the 27 PSBs to 12:
Finance Minister Nirmala Sitharaman yesterday announced the merger of 10 public sector banks into 4 PSBs. The following are the banks to be merged with others
- Union Bank, Andhra Bank, and Corporation bank
- Canara Bank and Syndicate bank
- Punjab National bank, Oriental Bank of Commerce and United Bank of India to be merged to become the second-largest public sector bank in India after SBI
Already last year SBI absorbed all its five associates banks to become the largest PSB in India. Also, Vijaya Bank, Dena Bank and Bank of Baroda were merged effective from April 1, 2019.
With all this, the total of 27 public sector banks in India will be reduced to only 12 PSBs.
What are the reasons that the major bank unions to oppose the bank merger?
The UFBU or the united forum of bank unions, which is an umbrella body of nine banking sector trade unions is opposing the merger. The AIBEA or the All India Bank Employees' Association is also demonstrating against the merger today. The reasons cited by them include:
- With the SBI merger, more than 1000 branches have been closed across India
- With the BOB merger, more than 500 of its branches are closed now
- No rationale or logic behind the move of the government to merge banks based on weak and robust nature or even for geographically compatibility
- The GDP announced at 5% for the first quarter is the least in the last six years is what the unions point out and ask is it the right time for such merging of banks.
There may be a difference of opinions during such big moves of merging banks. Ultimately it should only benefit the Indian public.