New Delhi: With the government announcing a mega-merger of 27 public sector banks (PSU) into 12 on Friday- the bank unions have said that they will protest against these mergers on Saturday citing that this move will not strengthen the banking sector.
A report in News18 quoted general secretary of the Bank Employees Federation of India (BEFI), Debasish Basu Chaudhury, “We are against this merger. A key reason is that even today, many people continue to exist outside the banking system,” said Chaudhury. “In earlier instances when banks have been merged, we have seen that branches and offices are shut down,” he added.
The protest will take place under the Joint Platform of Banking Unions which includes nine federations and representation from all public sector banks in India.
Here is the list of the merger of banks in descending order of their business:
- State Bank of India – Rs 52.05 Lakh Crore
- PNB + OBC+ United Bank of India – Rs 17.94 lakh crore
- Bank of Baroda (including Vijaya and Dena) – Rs 16.13 lakh crore
- Canara Bank + Syndicate Bank – Rs 15.20 lakh crore
- Union Bank + Andhra Bank + Corporation Bank – Rs 14.59 lakh crore
- Bank of India – Rs 9.03 lakh crore
- Indian Bank + Allahabad Bank – Rs 8.08 lakh crore
- Central Bank of India – Rs 4.68 lakh crore
- Indian Overseas Bank – Rs 3.75 lakh crore
- UCO Bank – Rs 3.17 lakh crore
- Bank of Maharashtra – Rs 2.34 lakh crore
- Punjab & Sindh Bank: Rs 1.71 lakh crore
The combined entities will control 82 percent of all public sector banks and 56 percent of all commercial bank businesses. While explaining the reason behind mergers, Sitharaman said, “The mergers would help in better management of capital.”
She also announced a series of governance reforms for government banks in the hope that the capital infused by the government into the lenders would result in “stronger banks”.