| Staff apprehensive about ICICI Banks' foreign ownership.
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| The Reserve Bank of India is motivating merger of weaker banks with those of stronger ones to strengthen the banking system in the country. But the move does not seem to have gone down well with employees.
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| After the controversial merger of the Ganesh Bank of Kurundawad with the Kerala-based Federal Bank, the Sangli Bank’s proposed merger with the ICICI Bank has run into rough weather with its 2000 employees opposing the move.
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| The issue has assumed national significance with the All India Bank Employees Association (AIBEA) threatening to oppose the merger in the interests of the Sangli Bank employees.
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| Voicing the concerns of its employees, Sangli Bank Employees Union general secretary Mallikarjun Sopal has said that ICICI Bank, though being managed by Indian officials, is under the control of foreign investors who have 74 per cent stake in the bank.
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| Another apprehension is the job guarantee for its employees. Of the 32000 employees of the ICICI Bank, 27000 are temporary and, therefore, there is no guarantee of continuation of Sangli Bank employees’ services after the merger.
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| Their fears are not baseless as only 350 of the 4000 employees of the Madurai Bank of Kerala were retained after its merger with the ICICI Bank. The management showed the door to the remaining employees.
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| Sopal has contented that the ICICI Bank is not the member Indian Banks Association and therefore is in no way bound by the agreement regarding employment, dearness allowance, seniority, etc. The best way out is to merge the Sangli Bank with a nationalised bank instead of the one which is under the control of foreign investors.
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| AIBEA state secretary Viswas Utagi has alleged that RBI, and particularly its director Anand Sinha, are responsible for the controversial merger.
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| He said that when the merger proposal was being discussed at a meeting, Prime Minister Manmohan Singh, who was also present, ordered the merger of the bank with a nationalised bank.
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| But the directive was ignored and the ICICI Bank was selected for the merger allegedly with the connivance of the directors of the Sangli Bank and Andand Sinha.
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| Utagi also alleged that the assets and share value of the bank were not duly calculated while deciding the cost of merger. He demanded a thorough probe into the affair.
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| Some years ago, the Bank of Maharshtra’s attempt to buy out the Sangli Bank shares was foiled by some vested interests.
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| Though the bank has run up Rs 29 crore losses, its own buildings, investment in government securities and strong network of branches with goodwill are the plus points that have attracted other banks to offer merger proposals.
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| Though the merger with the ICICI Bank has been endorsed by the directors, it is opposed by employees who prefer a nationalised bank. While a few nationalised banks are interested to merge it, the Bank of Maharashtra seems to be more keen and it may be considered, according to reliable sources.
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| The merger of the bank with the ICICI Bank will be ultimately decided by the RBI and the finance ministry. |
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