The Hindu Business Line : `Bank mergers could lead to job losses'

EXPERTS at a panel discussion on "Should banks be merged?" have expressed fears that merger and acquisition in banking industry may lead to serious job losses. The Corporation Bank Officers' Organisation organised the discussion at Udupi on Saturday.

Prof K. Krishnamurthy, retired professor, Department of Economics, Milagres College, Kallianpur, said mega mergers may also lead to downsizing of employees as seen in some of the software companies. It will affect the motto of the Government that wants to bring about "economic reforms with a human face".

Mr T.R. Bhat, Joint General Secretary of All-India Bank Officers' Confederation (AIBOC), said that it is difficult for the middle-aged employees to find jobs elsewhere.

Prof G.V. Joshi, Coordinator of Corporation Bank Chair in Bank Management at Mangalore University, who moderated the event, said, "We can't accept merger and acquisition in banking industry if they lead to serious job losses. It may worsen the condition of the country where unemployment and poverty are related," he said.

On the other problems that mergers may create, Mr Shenoy said there would be incompatibility of human resources among the merged entities, and differences in basic culture. Mergers may also have adverse impact on balance sheets, he said.

More Stories on : Mergers & Acquisitions | Human Resources | Karnataka

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