The Union Cabinet on Wednesday paved way for State Bank of India to become a banking powerhouse making it to the top 50 banks globally. But is it important to be big, ask the bank employee unions? Since it was first proposed in May last year, bank unions have strongly opposed the merger and have done multiple strikes against the proposal.
Under the banner United Forum of Bank Unions (UFBU), nine bank unions including All India Bank Employees Association (AIBEA) and All India Bank Officers’ Association (AIBOA) have questioned the government and SBI management’s need for creating a large bank.
CH Venkatachalam, General Secretary, AIBEA said, “What we need is not big but strong banks. Big banks also mean bigger risks. The SBI associates have been doing quite well in their own geographies, making good operational profits, what was the need for them to be merged?" he asked. "Bad loan problem is a universal problem.
Will merging the banks help the recovery of bad loans, will it improve their efficiencies?” Venkatachalam questioned further before replying with a stern "No." The UFBU gathered about one lakh employees across the country on Thursday to stage rallies and demonstrations opposing the big move yet again.
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