BoR unions urge RBI to block merger

The employee unions of the troubled Bank of Rajasthan (BoR) have sought the intervention of the Reserve Bank of India (RBI) to stall the proposed merger with ICICI Bank.

United Forum of Bank of Rajasthan Unions convenor Gopal Dass Gupta said the forum has urged RBI Governor D Subbarao to look into the proposed merger.

"BoR and ICICI Bank have deep differences in their work culture, clientele, approach to social objectives and service conditions of their employees.

"BoR is a member of the Indian Banks Association and the industry level bipartite settlement and pension settlement entered by the IBA and the bank unions are applicable on its 4,200 employees, whereas ICICI Bank, a commercial entity having 73 per cent equity of foreign institutions, engages in contractual employment or on different wage set-up and service conditions," he said.

 

The forum had already announced a five-day strike on June 4-6 and June 17-19 to protest against the merger. Its has also called for an independent probe into the dubious modus operandi of the merger plan.

BoR is fundamentally strong and has been generating operating profit over the years. Since its promoters committed irregularities, on which RBI and Sebi have taken cognisance, the dominant shareholders (Tayal group) are ensuring a safe exit with the merger, he said.

Disputing the decision of proposed merger by a certain group, the forum pointed out some discrepancies which hang before the bank. He also questioned the absence of five directors, including the managing director, from the board meeting which decided the merger.

"Despite the fact the meeting being crucial and convened at a short notice, five directors including the managing director preferred to abstain from the May 18 and May 23 meetings. Moreover, how the merger proposal could have been initiated at the instance of a group of shareholders who are under the scanner of the RBI and Sebi?" Gupta asked.