The Hindu Business Line : Union Bank move for reforms draws TU ire

In a letter sent to the bank, the unions have warned that moves to revise the minimum balance stipulation and penalties for not adhering to the minimum balance stipulation are likely to alienate a large section of the bank's loyal clientele and its implementation would engineer an exodus of these customers on a large scale.

This goes against the grain of mass banking, on which public sector banking industry in the country has remained rooted and grown over the years. This is also against the common minimum programme announced by the UPA government at the Centre, some trade union leaders said. The bank is thinking of redesigning its product portfolio based on a study conducted by the Boston Consulting Group from a sample of 250 customers in over 200 branches. Given the real nature of the bank's client base, the sample is totally inadequate, the unions said.

The leaders pointed out that the decision comes at a time when some foreign banks have launched customer mobilisation drives offering small loans through custom built products suited to individual requirements.

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Union Bank move for reforms draws TU ire