Money & Banking

Unions fear takeover of 4 private banks in Kerala

V. Sajeev Kumar Kochi | Updated on January 27, 2018 Published on April 24, 2017

Large corporate banks are eyeing Dhanlaxmi Bank, South Indian Bank, Catholic Syrian Bank and Federal Bank, which is evident from the accumulation of shares in bulk: Bank Employees Federation of India

Bank labour unions have expressed concern over the possibility of a move to take over four old-generation private banks in Kerala.

Bank Employees Federation of India (BEFI) said that “any such attempt would have far-reaching consequences.”

Established in the first half of the 20th century, Dhanlaxmi Bank, South Indian Bank, Catholic Syrian Bank and Federal Bank have played a vital role in the society, especially in extending initiatives such as mass banking and imparting financial literacy for the well-being of the rural folk.

BEFI said that certain large corporate banks are eyeing these banks, which is evident from the accumulation of shares in bulk. Alleging that a major part of the shares now being purchased are by NRI investors whose interest is only in trading profits, T Narendran, president, BEFI-Kerala, said this assumes greater significance in the context of the merger of associate banks with State Bank of India. He said there are hardly any legal bottlenecks in the country for merger of banks in the existing framework. Besides, the Centre’s decision to increase NRI participation in private banks to 74 per cent has made things easy, he added.

BEFI also alleged that the Centre is going ahead with its plan to merge the remaining 22 public sector to create six large banks. He said BEFI has chalked out a strong action plan against, among others, the closing down of branches and outsourcing work to third parties.

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Published on April 24, 2017
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