Letters: Merger is welcome

With reference to Abhijit Lele's report, "Govt chooses SBI to kick off bank merger" (May 18), the State Bank of India has finally decided to merge its remaining five associate banks with itself. This has been agreed to by the respective boards of the associate banks, too. However, a section of employees of the associate banks have called a nationwide strike against the decision.

The opposition to the merger is only with respect to the existence of the employees' unions rather than the benefits to their members. The staff of these banks will only stand to gain from the merger, as they will become part of a larger organisation. The only inconvenience they may face is regarding transfers, as they can be shunted out of their "comfort zones" post the merger. For example, for an employee of the State Bank of Travancore, whose transfers were limited to within Kerala, there is now a possibility of being shifted out of the state.

I hope the employees and officers of the associate banks consider the merger an opportunity to develop themselves and advance their careers rather than a threat to their "comforts".

On the leadership of the unions, it is more a question of survival, as some positions might be lost once they are absorbed into the larger organisation. This should not be a point of consideration while making a commercial decision. I am sure all the benefits enjoyed by the employees will be protected after the merger.

One change I anticipate is regarding the pensioners of the associate banks and the SBI. At present, the staff of the associate banks are entitled to a pension of 50 per cent of their last drawn salary, whereas in the SBI this is 50 per cent up to a certain level of basic pay, beyond which it is 40 per cent of the last drawn salary.

Being a pensioner of the SBI, I would request its management to consider granting pension to all existing and future pensioners at 50 per cent of their last drawn salary instead of continuing with the present system. I hope the associations concerned, as well as the pensioners' association, keeps this in mind and takes up the matter with the SBI management.

B C Unnikrishnan Nair, Kuthiathode

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number