Money & Banking

Bank unions seek West Bengal CM’s help to rescind PSB merger process

Shishir Sinha New Delhi | Updated on September 04, 2019 Published on September 04, 2019

The image is used for representational purpose only.

The amalgamation of 10 public sector banks into four seems to have taken a political turn with bank staff associations seeking the intervention of West Bengal Chief Minister Mamata Banerjee. The two Kolkata-headquartered banks, Allahabad Bank and United Bank of India, have reached out to the CM.

“We beseech your intervention to ensure that the draconian and retrograde decision to merge these PSBs is rescinded and also urge upon your good office to lead a movement to halt the entire process of merger,” said the All-India Bank Officers’ Confederation (AIBOC) in a memorandum to Banerjee.

Unions are opposed to the consolidation as they feel that such a move will create very little synergy without addressing the real issues plaguing the banking sector. In the letter, AIBOC said that apart from the cascading impact of this move, the mega merger will have a disastrous impact on the West Bengal economy.

The officers’ body argued that United Bank of India has been the convenor of the State-level Bankers’ Committee (SLBC) with lead bank responsibility in the 11 districts of West Bengal, along with Allahabad Bank, another major contributor to the State’s economy.

Now, “both anchor banks (PNB and Indian Bank) have no significant exposure or penetration in West Bengal economy”, the letter said, adding that if the process of merger goes through, Kolkata will remain with only one headquarter bank, UCO Bank, which has been tagged as a regional bank. This, the letter said, will definitely not augur well for West Bengal’s economy. The office-bearers of all leading bankers’ unions met Banerjee and submitted their petition. “The Chief Minister has given a patient hearing and consented to take up the issue in the appropriate forum and pledged her solidarity with the ongoing movement of AIBOC,” the officers’ body added.

Published on September 04, 2019
This article is closed for comments.
Please Email the Editor