The Hindu Business Line : Mergers will create jobs: Chidambaram

Mr P. Chidambaram, Finance Minister, and Mr S. S. Kohli, CMD, Punjab National Bank, at the inauguration of 1000th centralised banking branch of the bank in the Capital on Thursday. - - - Ramesh Sharma

New Delhi , March 24

THE Finance Minister, Mr P. Chidambaram, on Thursday urged bank employees to shun their fears over mergers and said consolidation among banks would create more jobs.

"The fear of job loss is not justified. On the contrary, jobs will be created," Mr Chidambaram said after inaugurating Punjab National Bank's 1,000th CBS branch here.

He said bank managements and unions should impress upon their staff on the need for consolidation.

"Competition, convergence and consolidation will be the key drivers of the banking industry in the future. There are unions, associations in each bank. Each one has a responsibility to communicate about the new drivers to the employers and staff," Mr Chidambaram said.

Consolidation would lead to strong banks. "We need strong banks and I am confident we are on the right path," he said.

Mr Chidambaram said public sector banks had become stronger in the last 15 years with a wide array of products and services.

He said banks have become one-stop shops, providing various products and services.

"Banks have tied up with insurance companies and insurance companies have tied up with post-offices. A time will come when post-offices will tie up with banks for selling their products," the Minister said.

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