Bank union questions plan to merge IDBI, UBI; threaten stir

Mergers take place when a country is overbanked but though 60 crore Indians are yet to get bank account, the government is planning consolidation, says employees association

seema

Seema Sindhu | August 1, 2014 | New Delhi



Even as the government has asked IDBI Bank and United Bank of India (UBI) to prepare a consolidation plan, the Chennai-headquartered All-India Bank Employees Association (AIBEA) has questioned the objective.

On Friday (August 1), AIEBA general secretary CH Venkatachalam said the association will protest the plan to merge the two banks, and any other bank for that matter.

"The government should first initiate a CBI probe against Archana Bhargava (the former UBI chairperson who made an inglorious exit after about 10 months at the helm) who disbursed loans left, right and centre and got away free," he told Governance Now over telephone. 

ALSO READ: At the top, govt banks set to be all-boys club!

Employees usually fear merger due to differential pay scale.

Venkatachalam said mergers take place when a country is overbanked but even though 60 crore people in the country are yet to get a bank account, the government is planning consolidation. “This,” he said, “is beyond any logic. China has 600 public sector banks against India’s 27. In March 2012, we had 68,900 public sector branches, which increased to 74,200 in March 2013 – 5,300 more branches. The private sector had 13,500 branches in March 2012 and expanded to 15,600 in March 2013 – an increase of 2,100.”

He said though public sector banks are reaching out to more people than their private sector counterparts, the government wants to “encourage private sector at the cost of public sector banks by consolidating the public sector banks and then diluting its stake”.

Large public sector banks are already struggling to catch up with private banks on service front, and merging more entities will only make them worse, Venkatachalam contended. There is room for all to do business when half the country is still deprived of banking, according to him.     

ALSO READ: A look at how SBI is preparing to be State Bank of World

A plan to merge State Bank of Patiala with State Bank of India is also on the anvil. AIBEA will start an agitation to stop "any such move” by the government, Venkatachalam said.
 

Comments

 

Other News

The training advantage

It’s a sultry March afternoon and students at a municipal school in Santacruz East are engrossed in their lecture. It’s 4 pm already but the training session in the mobile repairing course is in full swing. Twenty-four boys and four girls of class IX are in the last leg of their course before t

App aid for healthcare

Courier services and sales teams have soared into efficiency using smartphone apps to monitor deliveries, visits, timeliness and performance. Taking a leaf from their book, Gujarat is equipping accredited social health activists (ASHAs) and midwives with smartphones and an app to bring down infant and ma

Government divests 12% stakes in RITES; IPO opens on June 20

The railway infrastructure consulting PSU, RITES Limited is coming up with its IPO on June 20, 2018, as the government of India is selling its 24 million equity shares (12%) stake in the Mini Ratna PSU. As an initial public offering 25,200,000 equity shares are offered in which employee reservation portion

“This initiative is for future generations”

Speaking to Governance Now, Gujarat chief minister Vijay Rupani elaborates on the Sujalam Sufalam scheme to rejuvenate talavdis and desilt reservoirs and lakes. He also speaks on water, politics, and cons

Water by the pondful

It’s 10 am and in Dhandhuka town of Ahmedabad district, the sun is already scorching. A dry lake, which was desilted and deepened a few weeks back, has been turned into a venue for a fete. Shamianas have been erected, women in bright sarees and men and children in their best clothes flock the venue,

Thugs of Hindustan

This story may sound apocryphal but it was recounted by LK Advani in one of his casual conversations. Talking about Morarji Desai, he said that despite his idiosyncrasies, he was a man of impeccable integrity. To buttress his point Advani recalled this incident: After the Janata Party formed the government

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter