Showing their displeasure against the recent decision of merger between State Bank of India (SBI) and its associated banks, Banks employees union have alleged that the venture will lead to employment.
According to the State Sector Bank Employees Association (SSBEA), the merger of five associate banks with parent SBI will lead to closure of a large number of branches, loss of employment opportunities and curtail banking service to the commoners, the State Sector Bank Employees’ Association has alleged, reported The Hindu.
The Union Cabinet recently approved the acquisition by the SBI of its associate banks — State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. The Association said it is opposed to the annihilation of associate banks.
Referring to government’s observation that the ‘merger is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds’.
SSBEA apprehends that this objective would be achieved through massive closure of branches, restricting of small loans and job cuts.