SBI close to getting govt nod for rights issue

 Updated at 1700 hrs: The employees of State Bank of India (SBI) is planning to protest against any move by the bank to acquire other banks like State Bank of Mysore, State Bank of Indore and State Bank of Bikaner & Jaipur.

"We are completely against the merger of these banks as the smaller banks have a strong legacy in their regions, and they would lose their regional relevance and the specific customer base if they are merged with SBI" said Rakesh Gangal, general secretary, All India State Bank India Staff Federation (AISBISF) in Kolkata today.

The government wants State Bank of India (SBI) to acquire its smaller associates to achieve scale and size. The government is working on a proposal, along with the SBI management, to merge four of its subsidiaries - State Bank of Saurashtra, State Bank of Mysore, State Bank of Indore and State Bank of Bikaner & Jaipur - to help increase its assets size by Rs 1 lakh crore.

The staff association of SBI is gearing up for a nationwide agitational programme from 20 November with three primary demands - oppose the merger of the public sector banks, nationalisation of private banks and stop outsourcing of various bank jobs.

Along with these, long standing issues such as salary increment, new recruitment to fill up existing vacancies and expediting the pension option would also figure in the agenda.

Commenting on the merger of the State Banks of Saurashtra, Gangal said it was an exception as the employees of the bank had been demanding for many years for a merge with SBI. "In all the other cases of proposed mergers, we are going to oppose tooth and nail," Gangal added. (BS Reporter)