AIBEA to hold country-wide protest against bank mergers on October 22

All India Bank Employees Association (AIBEA) and Bank Employees Federation of India (BEFI) have called for a strike across the country on October 22, to stage a protest against the mergers of 10 public sector banks (PSBs). This comes after the financial institutions issued a letter in the public domain claiming "Merger of Banks is the murder of Banks". "The government may call it a merger but in reality, it is cold-blooded murder of 6 Banks (Allahabad Bank, Andhra Bank, Corporation Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India), read excerpts from the letter.

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'Merger is murder'

"After the merger, these 6 Banks which have been built up over the years, will disappear from the banking scenario", the letter reads. "The government talks of prosperity for all but by closing down these 6 Banks, 6 main arteries of the banking system are being cut off. The victim Banks, viz. Allahabad Bank, Andhra Bank, Corporation Bank, Syndicate Bank, United Bank of India and Oriental Bank of Commerce are very good Banks and have catered to the economic development in the respective geographic areas in a big way. Suddenly deciding to close these Banks is inappropriate and unwarranted as well as harmful to the economy," the bank union further stated in its letter. The protesters were of the view that "India country needs good banks, not big banks."

The Financial Merger was as per the following: Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged and will be anchored by Punjab National Bank. Canara Bank will anchor the merger with Syndicate Bank. Union Bank will merge with Andhra Bank, India Bank will merge with Allahabad bank. This is not the first protest against the bank merger, with the United Forum of Bank Unions (UFBU), a body of nine banking sector trade unions.

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Decrease in overall PSBs

The Central government on August 30, announced the merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years. After this, the total number of PSBs will come down to 12 from 24 banks, Union Finance Minister Nirmala Sitharaman had said at a press conference. Apart from this, the government announced Rs 55,250 crore upfront as a capital infusion in the PSBs. 

(With inputs from ANI)

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