Further assuring the smooth flow of the proposed great banking merger Union Finance Minister Nirmala Sitharaman clarified that fears of job losses due to merger of banks is very wrong perception.
Speaking to media, the Finance Minister assured that not even a single employee will lose his or her job following the mergers.
In a major reform measure, the Central government announced the merger of 10 public sector banks (PSBs) into four entities, which includes the amalgamation of Oriental Bank of Commerce and United Bank of India with Punjab National Bank.
According to Finance Minister Nirmala Sitharaman, Canara Bank and Syndicate Bank will be merged into one entity, while Union Bank of India, Andhra Bank and Corporation Bank will be amalgamated into a single entity. Similarly, Indian Bank and Allahabad Bank will become one entity. The Finance Minister further said that the Bank of India and Central Bank of India would remain independent.
After the amalgamation, only 12 PSBs will be left in India from the 27 earlier. Further speaking on the ‘alleged job cuts’ the minister today added that most of the employment in the economic sector is generated by the informal sector which remains undocumented.
Meanwhile, concerns of a slowing economy have racked up again as severe slowdown in manufacturing activity in the country pulled India’s GDP growth rate in first quarter (Q1) ended June down to 5 per cent, marking the fourth successive quarter of decline in growth on the trot. From 8 per cent during Q1 of 2018-19 to 5 per cent in this quarter, the GDP has fallen by three per cent in barely a year.