Merger will force branch closures, hit customer service: staff association

Branch closure would mean more customers going to fewer branches. Banking services would be impacted, as the customer population per branch will increase

The Central Government's decision to merge 10 public sector banks into four larger entities would increase risks and will not resolve the bad loan problems faced by these lenders, said All India Bank Employees' Association (AIBEA). The association is protesting against the move, alleging that the merger would force several branches to close down and impact customer services in the remaining branches.

"While public sector banks made a combined gross profit of Rs 1,50,000 crore (Rs 1.5 trillion) for the year ended March 31, 2019, because of provisions towards bad loans, etc amounting to Rs 2,16,000 crore, they ended in