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K.R. Srivats

New Delhi, Feb. 12 Consolidation blues continue to afflict the unions of state-owned banks.

About 40,000 employees of the associate banks of the State Bank of India (SBI) are to strike work on February 17. The strike call has been made to protest, among other issues, against the SBI management’s recent “attempts to foist merger of Associate Banks with SBI”.

The United Forum of Bank Unions (UFBU), a representative body of nine bank unions, has shot off a letter to the SBI Chairman, Mr O.P. Bhatt, conveying ots “strong protest” against such attempts.

“We are disturbed to see that once again attempts are being made to bring about merger of associate banks with SBI. The UFBU is opposed to the process of merger among state-owned or public sector banks”, Mr C.H.Venkatachalam, Convenor, UFBU, told Business Line.

The UFBU is of the view that consolidation and merger of public sector banks will result in shrinkage of banking services and result in the financial exclusion of the masses as the main purpose of merger is understandably to become commercially bigger in size. Only expansion, and not consolidation of public sector banks, would help achieve the objective of total financial inclusion, according to the UFBU.

Global events have revealed that bigger banks are not necessarily stronger banks. Rather they have become more vulnerable, the UFBU has pointed out.

More Stories on : Trade & Labour Unions | Public Sector Banks | State Bank of India

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