Money & Banking

JFTBU seeks white paper on previous bank mergers

Our Bureau Mangaluru | Updated on October 16, 2019 Published on October 16, 2019

The Joint Forum of Target Bank Unions (JFTBU) has asked the Central government to issue a white paper on the outcome of the previous two bank mergers.

Ekanath Baliga, convenor of JFTBU, said that a meeting of the leaders of the unions in the target banks proposed to be merged with the anchor banks was held in Mumbai on Tuesday to chalk out action programmes to oppose the Central government’s moves to merge smaller public sector banks (PSBs) into larger PSBs.

Stating that the government has not assessed the impact of the previous two mergers, he said there are a number of customer-related issues among the erstwhile associated banks of State Bank of India. Several unresolved issues are plaguing Bank of Baroda (BoB) as Dena Bank and Vijaya Bank gets merged with BoB.

In this background, JFTBU has demanded the withdrawal of the merger announcement. Instead, it has asked the government to issue a white paper on the outcome of the previous two mergers, he said.

Baliga, former president of Corporation Bank Officers’ Organisation (CBOO), said that mergers have never helped any banking unit in the past. Post-merger, the mega banks have suffered in terms of business and quality.

The present course of mergers will only result in loss of PSB business to private sector entities, he said.

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Published on October 16, 2019
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