The Hindu Business Line : AIBOC to go on strike if Govt moves to merge Union Bank, BoI

THE All India Bank Officers' Confederation (AIBOC) has decided to go on a strike if the Government plans to go ahead with the proposed merger of the Union Bank of India and Bank of India.

Mr R.C. Agarwal, President of AIBOC, told presspersons that close to 800 branches across the country would close down if the merger proposal between the two banks went through. He said that if the banking sector wanted to merge other banks, many more branches would close shop.

The banking sector currently has a strength of 56,000 branches across the country - 24,000 are in the rural areas and 10,000 in the semi-urban areas.

Mr Agarwal was in the city for the 40th anniversary celebrations of the All-India Central Bank Officers' Federation of which he is the General Secretary.

He said that AIBOC, which has a strength of 2.3 lakh members representing 88 per cent of the banking industry, is not only opposed to all mergers, acquisitions and take-overs but is also against the Government's plan to increase the foreign direct investment limit for banks to 74 per cent from 49 per cent currently, even in private banks.

Mr Agarwal said it was disturbing to note that the Government was also in talks for lifting the restriction on the 10-per cent voting rights to foreign banks.

"If the restriction is lifted, half the private banks in the country will become foreign banks within six months," he said.

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AIBOC to go on strike if Govt moves to merge Union Bank, BoI