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Friday 6 December 2019
India Banks stage protest as govt unveils merging of PSBs

Banks stage protest as govt unveils merging of PSBs

The govt on Friday unveiled a mega plan to merge 10 public sector banks into 4 to create fewer and stronger global-sized lenders

New Delhi: Members of the All India Bank Employees’ Association on Saturday staged a protest in Delhi against the Centre’s decision to merge 10 public sector banks into four entities.

The government on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as it looks to boost economic growth from an over six-year low.

Employees of all public and private sector banks wore black badges to work as a mark of protest to the government’s decision.

The Association’s General Secretary, CH Venkatachalam said the government’s move was “ill timed” and needs a review.

A rally opposing it was also planned by the Association, Venkatachalam told. He alleged the merger of public sector banks would mean closure of six banks.

The BJP government at the Centre had on Friday unveiled a mega plan to merge 10 public sector banks into four, to create fewer and stronger global-sized bankers as it looks to revive economic growth.

“Government may call it a merger.. six banks which have been built up over the years will disappear from banking scenario”, Venkatachalam said. He recalled that when the financial recession was experienced world over in 2008, the domestic banking system was safe because of public sector banks. On further course of action, he said the Union would meet in New Delhi on 11 September to decide on going on strike.

PNB to hold meeting on 5 Sept to consider merger with OBC, UBI

Punjab National Bank (PNB) on Saturday said a board meeting will be held on 5 September to consider amalgamation of Oriental Bank of Commerce and United Bank of India with itself.

PNB has received a communication from the Ministry of Finance that the Alternative Mechanism (AM), after consultation with Reserve Bank of India (RBI), has decided that Punjab National Bank, Oriental Bank of Commerce (OBC) and United Bank of India may consider amalgamation, it said in a regulatory filing.

“Accordingly, a meeting of board of directors to consider the amalgamation will be convened by the bank shortly,” PNB said.

Meanwhile, Corporation Bank, which is going to be merged with Union Bank of India along with Andhra Bank, too said a board meeting will be held to consider the merger.

In a stock exchange filing, it said “a meeting of the Board of Directors of the Bank to consider the amalgamation will be convened by the Bank in due course”.

Finance Minister Nirmala Sitharaman, who had last week announced tax sops and measures for sectors such as auto, announced four new sets of mergers — Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation’s second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.

The exercise, seen together with the previous two rounds of bank consolidation, will bring down the number of nationalised public sector banks to 12 from 27 in 2017. This, the government feels, will make bank balance sheet stronger with greater capacity to lend.

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