While protesting against the banking mergers, bank employees have called a nationwide strike on Wednesday (26th December 2018). This time the staff of government banks will be joined in protest by employees of 12 private banks also. However, many other lenders like HDFC, ICICI and some others who received their licenses recently will remain working as usual.
During the strike, protests will be held outside the banks across the country. The government recently announced the merger of Bank of Baroda, Vijaya Bank, and Dena Bank. The government has started the process of official merger of these banks in the month of September.
Need more banks, not merger
All India Bank Employees Association’s Secretary General CH Venkatachalam said there is a need to open more branches to take banking facilities to all common people in India. But the government is pushing for the merger of banks.
He said around 6500 bank branches were closed in the country due to the merger of banks in State Bank of India. This increased the difficulty of the common people. There is also a reduction in recruitment in the banks.
According to All India Bank Employees Association’s general secretary CH Venkatachalam, the capital of big banks will be high and they will give big loans. The risk in big loans will be even higher. After the merger of banks in State Bank of India, the bank’s NPA has increased. In such a situation, the merger of banks in India is neither in the interest of the banks nor the common people.
Banks’s losses to increase
The government is working on the merger of banks while employees claim it is a wrong move which will increase the losses in banks
According to Venkatachalam, the capital of big banks will be high and they will give big loans. The risk in big loans will be even higher. After the merger of banks in State Bank of India, the bank’s NPA has increased. In such a way, the merger of banks in India is neither in the interest of the banks nor the common people.
Bank merger proposal accepted
The strike has been announced by the United Forum of Bank Unions, a joint forum for all banks’ personnel. Both bank employees and officials will participate in the strike. Ashwani Rana of National Organization of Bank Workers said all banking organizations involved in the United Forum of Bank Union will participate in this strike.
Significantly, the Board of the three banks has also approved the government for the merger of Dena Bank and Vijaya Bank in Bank of Baroda.
The bank formed after the merger of these banks will be the third largest bank after the State Bank of India and HDFC Bank in the country. By the end of June this year, the total turnover of these three banks was about Rs 14.82 crore.
