No job loss post merger: FM

Chennai, September 1

Finance Minister Nirmala Sitharaman today allayed fears of job losses following the proposed merger of public sector banks, saying not even one employee shall be removed following the amalgamation.

“Absolutely ill-informed. I want to assure every union in every one of these banks to please recall what I said last Friday.  I very clearly underlined there shall not be one employee removed. Not at all,” she told reporters here.

She was replying to a question on bank employee unions opposing the merger plan on the ground it would lead to loss of jobs.

Sitharaman on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as the government looked to boost economic growth from a six-year low. Sitharaman, who was here to address officers of Customs, Goods and Service Tax and Income Tax departments, said there would not be any closure of banks and no bank was being asked to do something new.

On August 23, Sitharaman had announced a raft of measures to boost the economy, including capital infusion of Rs 70,000 crore into public sector banks. The All India Bank Employees’ Union had alleged Indian Bank might face closure following its merger with Allahabad Bank. Sitharaman said Indian Bank would be the anchor bank after the merger.

“Another bank in this region is Indian Overseas Bank, which continues without any amalgamation. It is something you should keep in mind.” — PTI

‘Have no magic wand’

Government has been in consultation with a lot of sectors…. Across the board there is no one answer I can give, saying this is the magic wand. Sectorially, what they want, we are responding. —Nirmala Sitharaman, Finance Minister