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 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.
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.
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.
Being and Becoming Multilingual: Some Narratives Edited by Rajesh Sachdeva and Rama Kant Agnihotri
The BrihanMumbai municipal corporation (BMC) has rejected the Congress accusations of financial irregularities worth Rs 8,000 crore—9,000 croe in awarding contracts for getting project-affected people (PAP) tenements on private land. BMC has said that it implements vital p
Does the concept of sedition have a place in modern democracies? This question became more relevant when the apex court recently put the country`s colonial-era sedition law on abeyance stating that there is a “requirement to balance… security interests and integrity of the State… and th
The Collected Stories of Saadat Hasan Manto: Volume 1: Bombay and Poona Translated by Nasreen Rehman Aleph Book Company, 548 pages, Rs 999 There are writers, there are writers’ writers, and then there are readers’ writers. Saadat Hasan Mant
Meet Promila Krishna, 39, Lalita Nayak, 40, Parbati Gadba, 42, Sanadei Dhuruwa, 39, and Nabita Barika, 41, of Kundra block in Odisha’s Koraput district. Except for Promila who is a matriculate, others haven’t attended school beyond the elementary level. However, while introducing themselves to
Michelle Obama once said, “No country can ever truly flourish if it stifles the potential of its women and deprives itself of the contributions of half of its citizens.” That should be so obvious, but it is not, and countries keep depriving themselves of the contributions of half of their popul