After merger Boss is always a boss please read the article

After the success of SBI Merger(as per government), its now Bank of Baroda,Vijaya Bank and Dena Bank.

During SBI Merger, initially staffs of Associate banks were very happy.They thought it would be a very different and good experience , after merger, to work in a global bank. But as you know, Boss is always a boss so is Management.

The following 15 points are coming in our minds after SBI Merger:

1. Staff id of Associate banks were in different format , So that everyone in that bank can differentiate and discriminate.

2.Associate bank's Branch/Admin heading people were given a 2nd line post in all SBI banks and original SBI Bank people were given a better treatment in transfer, placement, Regional/Zonal/Head Office etc.

3.There was even a news of getting back the over time allowance given to Associate bankers for the extra work done during demonetization, when it was given to all SBI bankers after merger.It was told that during demonetization, the banks were not merged and a lesser amount was paid already to Associate bankers before merger as OT Allowance for the same. After merger, Non assosciate SBI bankers were paid higher amount, as the same OT allowance for demonetization.

4.The work culture were complicated. All associate bankers were humiliated.

5.Many number of branches which were with Associate banks were closed. In the name of optimisation, many employees were deployed and transferred to far away places with different linguistics Region. These reduction in branches and transfers are making the banks to loose its Customers also.

6.Imagine the difference in customer service given to a customer at home branch and at other branch of same bank. Now imagine the same customer service with different setup of the merged banks. Will it really improve ?

7.When Recovery is need of the hour, the bank is concentrating on merger process. This merger process needs man hours which is hampering the recovery process. This merger process will require atleast 2 years to get settled with right products and norms. Till then, is it right , to spend on premises matter and printing stationery matter , even when recovery process is hampered ?

8.After mergers, banks are required to follow the new products,norms, policies and manuals etc in all banking domain (lending and recovery). Executives and managerial staff in merged banks will not know the procedure and it will take atleast 3-5 years, to have that knowledge of the new norms and new customers and to become normal, in lending and recovery.

9.In this 2 years(point 7) and 4 years (point 8) , i.e. atleast for 6 years, there will not be that much growth in merged banks.And in that time frame private bankers will overtake the PSU's good business and the merged banks will loose the core banking market and will be left with only corporate infrastructure markets which eventually are resulting in loss right now.

10. Loosing of this good banking market will affect even the stronger bank which was chosen for merger. The best example is the loss of Rs12000 crore shown by SBI in march 2018(In history of SBI, it never showed the Loss this much).Because of which, in future Salary and Renumeration of whole SBI employees will certainly be affected.

11.At last for the first time in the history of SBI , A loss of this much , was shown in that quarter , that too with almost all government deposits and treasuries, being handled by SBI at a very low cost with same software platform.We have to think about other banks that has high cost of funds, which do not have sound government deposits and treasuries with different software platform.

12.There are other alternatives for Merger like creating Bank for Bad loans, Bank for infrastructure lending, stringent recovery policy for corporates etc and other steps which could also make the PSUs profitable.

13.Making SBI into a loss showing bank is seen as a successful story of merger by Government of India and same is being followed for other banks . This makes us to question the real intention of Government.Whether government has intention to convert and show the profit showing good banks into loss making big banks through merger?

14.This merger will start with creation of a Large size bank.Eventually will be Privatised and will be sold to Foreing banks through liberalisation in the name of loss.These are plans which positively documented in Raghuram Rajan's A Hundred Small Steps.

15.As per the "Washington Consensus"(please google it), All member government institutions are to be privatised and to be liberalised and should be taken over by foreign entities.This is the agreement signed between Govt of India and World Bank , while getting loans and grants for various infrastructure development project.This should also be kept in mind while seeing this merger.

So every thing is planned and worked in accordance with this above (14) and (15) only.If we do not unite and stop now, then can never.Merger may look good for some employees at first but eventually it is a step towards privatisation.If u want to privatise PSBs now, it needs the consensus in all 21 PSBs but after merger it needs consensus in 6 PSBs only, if merger is completed.

Please think and act.

Sivakumaran S K
A Common Banker