Union flays bank merger

Tribune News Service

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Ludhiana, September 8

The State Bank of India Employees Union (Chandigarh circle) today held a general body meeting at Extension Library Hall.

The meeting was addressed by SK Gautam, joint secretary, All-India Bank Employees Association and chairman, State Bank of India Employees Union (Chandigarh circle); Naresh Gaur, general secretary, State Bank of India Employees Union (Chandigarh circle) Yadwinder Gupta, president and Narkesar Rai, deputy general secretary.

While addressing the meeting, Gautam said banks were nationalised in 1969 with a clear social and economic objective of broad-basing the economy and its development.

In the past 50 years, the nationalised banks have made a phenomenal contribution in building up a strong economy with a visible social orientation, he said.

As many as 8,000 branches have expanded to 90,000 today, of which 40,000 branches are located in rural and semi-urban areas, he added.

The government talks of prosperity for all but by closing down these six banks, six main arteries of the banking system are being cut off, Gautam said.

The ‘victim’ banks — Allahabad Bank, Andhra Bank, Corporation Bank, Syndicate Bank, United Bank of India and Oriental Bank of Commerce — are well-established banks and have catered to the economic development in a big way, Gautam added.

Suddenly deciding to close these banks is inappropriate and unwarranted, he said.

“The country is facing serious economic slowdown and downturn. Banks with their huge resources at their command can play a decisive role to revive the economy,” said Gautam.

“In fact, only last week, the Finance Minister assigned important jobs for our bank in boosting the economy. The decision to merge and close banks is a total diversion from these tasks. Bank themselves face problems due to huge pile up of bad loans,” he added.

While the public sector banks made a total gross profit of Rs 1,50,000 crore for the year ended 31-3-2019, because of total provisions towards bad loans, amounting to Rs 2,16,000 crore, the Banks ended in a net loss of Rs 66,000 crore.

“Can anyone believe that merger of Banks will result in recovery of the huge corporate bad loans? Big bank means big risk, because the big bank can give big loans and take big risks. What India needs is strong and people-oriented banks and not necessarily big banks,” he added.

“We demand to improved customer service by recruiting adequate clerks and subordinate staff in banks, end to outsourcing, grant contributory provident fund from the date of confirmation to all employees, to implement compassionate appointment scheme as IBA-Government approved industry-level scheme, to introduce web-based procedure for holiday home bookings, to resolve ex-servicemen issues, respect for employees’ rights and ensuring harmonious work place.