Bank employees stage protest against Centre's move to merge PSU banks

Members of All India Bank Employees' Association on Saturday std a protest in Chennai against Centre's decision to merge 10 public sector banks into four entities. Employees of all public and private sector banks wore black bges to work as a mark of protest to government's decision. Association's General Secretary, C H Venkatachalam said that government's move was "ill-timed" and needs a review. A rally opposing it was also planned by Association, Venkatachalam told PTI. He alleged merger of public sector banks would mean closure of six banks.

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Centre merges 10 PSBs into 4 banks

BJP government h 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 ecomic growth. Finance Minister Nirmala Sitharaman said 10 public sector banks -- Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank, United Bank of India, Allahab Bank, Syndicate Bank, Corporation Bank, Oriental Bank of Commerce and Andhra Bank would be merged. "Government may call it a merger.. six banks which have been built up over years will disappear from banking scenario", Venkatachalam said. He recalled that when financial recession was experienced world over in 2008, domestic banking system was safe because of public sector banks. On furr course of action, he said Union would meet in New Delhi on September 11 to decide about  strike.

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Changes in banking sector

Finance Ministry has anunced multiple reforms over last 10 days to dress ecomic slowdown, with mega-merger of banks being latest measure. Ministry also instructed  banks to finish consolidation process in a smooth manner. Along with mergers, Ministry also anunced a slew of ministrative changes. Listing vants due to this move, FM Sitharaman has said that re will be great cost reduction due to network overlaps and cost-saving for joint ventures among ors. India will w have 12 Public Sector Banks from 27 Public Sector Banks after merger. Chief Risk Officers will w be appointed from market, anunced Sitharaman. Sitharaman also declared that fees of n-official directors could be increased. She ded that y would w function like independent directors. 

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