The Hindu Business Line : Bank mergers

Your editorial “Merger fright” (Business Line, December 28) was quite timely holds an important message that will benefit all stakeholders. As rightly stated, leveraging union power to get better compensation would serve the employees of the SBI’s associate banks better than simply opposing any merger.

Unions generally indiscriminately oppose most new initiatives. In 1995-96, before the deadline fixed for submitting one’s option on pension, the same unions of PSBs went round pressurising staff not to opt for pension as the benefit there-under would be much less than PF benefit. Most of the younger staff who, going by the advice of unions did not opt for pension, are now suffering for want of pension.

Executives, officers and staff in new private banks are now getting more salary and incentive than the staff of SBI group banks and other PSBs. Instead of opposing the merger of associate banks with the parent bank, the employees must welcome the merger to derive economies of scale. A giant SBI that is going to be created following the merger can be a global player. The capacity to pay of such a giant bank will be enhanced.

K. K. Ammannaya Udupi

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