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BoB-Dena-Vijaya Bank merger unwarranted, will lead to job cuts: AIBEA

Opposing the merger of these three banks, nearly one million bank employees and officers will take part in a nation-wide srike on Dec 26, says AIBEA

Press Trust of India  |  Chennai 

bank merger
Illustration: Ajay Mohanty

The (AIBEA), which has called for a nation-wide strike on December 26 opposing the merger of Bank of Baroda, Dena Bank and Vijaya Bank, on Saturday said the move was unwarranted as it would not be beneficial to the economy and the people at large. 

"The merger will also affect the interests of employees, their jobs and job security. The move would also affect employment opportunities in the banking industry," the association's general secretary, CH Venkatachalam, said here.
 

Noting that several villages were yet to receive banking services, he said, "There is a huge exclusion of people. need to be expanded. No need for consolidation."

Referring to the government's contention that the merger would make the stronger, Venkatachalam said, "There is no evidence to this conclusion. Last year, six were merged with SBI. But SBI (State Bank of India) has not become any bigger."
 


"After merger of the six banks with SBI, the non-performing assets have further gone up to Rs 2.25 trillion. Hence, it is also a wrong presumption," he said. 

The mergers of the banks would "surely" result in the closure of branches and would endanger job security, he added. 

Urging the Centre to take tough measures to recover bad loans, the association said the government was instead trying to divert the attention and focus on resorting to bank mergers.
 

Claiming that the total NPA in Bank of Baroda, Dena Bank and was Rs 800 billion, he sought to know if these bad loans would automatically be recovered if these banks were merged.

Opposing the merger of these three banks, nearly one million bank employees and officers would take part in the nation-wide srike on December 26, he said.   

First Published: Sat, December 15 2018. 16:40 IST
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