Money & Banking

Corp Bank trade unions fear closure of branches post-merger

A J Vinayak Mangaluru | Updated on December 06, 2019

United Forum of Corporation Bank Unions (UFCBU) has expressed concern that the proposed merger of Corporation Bank and Andhra Bank with Union Bank of India will lead to the closure of many branches of Corporation Bank in some states.

Addressing presspersons in Mangaluru on Friday, Satish Shetty, General Secretary of Corporation Bank Officers’ Organisation (CBOO) and office-bearer of UFCBU, said Union Bank of India has more than 900 branches in Uttar Pradesh and Corporation Bank has around 350 branches in that state. Considering the concentration of Union Bank of India in U.P , many of the branches of Corporation Bank are likely to face closure in that state, he said.

Similarly, Andhra Bank has around 2,000 branches and Corporation Bank around 450 branches in Telangana and Andhra Pradesh states. The proposed merger may lead to the closure of many branches of Corporation Bank in these two states also, he said.

Such closure of branches will not help the existing customers of the bank in those branches. Quoting the examples of the merger of associate banks of State Bank of India (SBI) with it, and the merger of Vijaya Bank and Dena Bank with Bank of Baroda, he said many of the customers of these banks, especially senior citizens, are facing problems because of the closure of the branches in their vicinity.

Referring to the government programmes such as Pradhan Mantri Jan Dhan Yojna and farm insurance scheme, he said the government could implement these schemes because of the wide network of branches of public sector banks across the country. The closure of branches post-merger may not yield the desired results in the implementation of various government schemes, he said.

Though the country had around 8,000 branches of various banks prior to their nationalisation, the number crossed 30,000 barely 10 years after that. Such an expansion of branch network helped take the banking services to vast majority of people in the country, he said.

Vincent D’Souza, Convenor of UFCBU, said that all the trade unions of Corporation Bank will stage a day-long protest under the banner of UFCBU in front of the head office of Corporation Bank in Mangaluru on Saturday. Various noted personalities from coastal Karnataka will lend their support by participating in the day-long protest, he said.

Published on December 06, 2019

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