Our BankING INDUSTRY need expansion and not amalgamation.

Dear All: MERGER OF PUBLIC SECTOR BANKS

On 30-08-2019 evening, the Central Government announced merger of 10 PSBs into 4 Banks as follows:

PNB, Oriental Bank of Commerce, United Bank of India
Canara Bank, Syndicate Bank
Indian Bank, Allahabad Bank
Union Bank of India, Andhra Bank, Corporation Bank

All of us are aware that Banks were nationlaised in 1969 with a very clear social and economic objective of broad-basing the economy and its development.

In the last 50 years, the nationalised Banks have made a phenomenal contribution in building up a strong economy with a visible social orientation.

8000 Branches have become 90,000 bank branches today, out of which 40,000 branches are located in rural and semi-urban areas which were earlier neglected.

Credit to priority sector has boosted our economy resulting in achievements like
green revolution and white revolution,
industrial progress,
job generation,
rural development, etc.

In 2008, when the entire globe was facing financial turmoil and banking tsunami, Indian banking system was safe because of our public sector banks.

The Government talks of prosperity for all, but by closing down these 6 Banks, 6 main arteries of the banking system are being cut off.

The victim Banks, viz.
Allahabad Bank,
Andhra Bank,
Corporation Bank,
Syndicate Bank,
United Bank of India and
Oriental Bank of Commerce are very good Banks and have catered to the economic development in the respective geographic areas in a big way.

When the country is facing serious economic slowdown and downturn, announcement of mergers is not only ill-timed, but also unwarranted.

Banks themselves face problems due to huge pile of bad loans. While the Public Sector Banks made a total gross profit of Rs. 150,000 crores for the year ended 31-3-2019, because of total provisions towards bad loans, etc. amounting to Rs. 2,16,000 crores, the Banks ended in a net loss of Rs. 66,000 crores.

Can anyone believe that merger of Banks will result in recovery of the huge corporate bad loans?

Rather, as we have observed after merger in SBI, bad loans in SBI has gone up.

Same risk is facing these Banks now.

Everyone knows that in India, banking density is much low compared to many countries of the world.

Thousands of villages are still unbanked.

Our Banks need expansion and not amalgamation. There is a huge space for banks to expand and reach the people. When we need more branches to be opened, merger of banks will result in closure of large number of branches.

We have seen after merger in SBI that 7000 branches were closed down.

In this proposed merger, the closure of branches will be much more.

It will be most unwise to reduce the branches in the country.

Merger of big banks will only help the big Corporates.

It is obvious that the Government, in the name of banking reforms, wants to enable the Banks to help the Corporates.

Workforce in banks have already been opposing merger of Banks as unwarranted in our country. But the Government wants to push further merger of Banks.

In view of the same, UFBU called upon the bank employees to rise in protest against closure of 6 PSBs as above in the name of mergers by holding massive demonstrations on 31st August 2019 all over the country and is expected to launch agitations and strikes shortly.

Our National Organisation, All India Bank Retirees’ Federation is of the view that the proposed mergers would affect large work force of about 3 lakhs and 1.75 lakhs retirees in these 10 banks.

AIBRF has combined membership of about 68000 in these 10 banks, who will also be affected directly and indirectly because of this decision of the government.

We are of the considered view that collective decision based on collective discussion in letter and spirit has always been superior when compared to individual intelligence.

UFBU has taken collective decision, wherein constituents belonging to the ruling establishment is also there.

Every one is entitled to have his view on any topic based on one's political choice. Right from inception, the twin banners in the banking industry have been advocating the cause of the serving employees & officers, besides retired employees in banks and advocate the politics of not any particular political party, but politics of the working people all over the country.

Left movement in India has been speaking and voicing the concerns of the common people to improve their living standards.

Politics of left movement is for the vast multitudes of the masses of millions and certainly not for millionaires.

Please come forward and walk with us and be a part of this great journey of ours for social transformation.

Let us stand shoulder to shoulder with the bank workforce in the ongoing struggle in the larger national interests with banking patriotism so that the interests of the in-service employees and retirees are protected.

-- S V Srinivasan,
General Secretary, AICBRF