SBI unions oppose move to merge associate banks
Thiruvananthapuram, Mar 24 (PTI) The officers and staff unions in State Bank of India (SBI) have expressed concern over the Centre's move to effect merger of SBI and the associate banks, arguing it would turn out to be a hindrance to the growth of Indian public sector banking system.
March 24, 2011 / 21:35 IST
The officers and staff unions in State Bank of India (SBI) have expressed concern over the Centre's move to effect merger of SBI and the associate banks, arguing it would turn out to be a hindrance to the growth of Indian public sector banking system.
In a joint statement, the Stat Bank Staff Union and SBI Officers Association of Kerala Circle today said the merger would eventually lead to privatisation of India financial sector.Mergers were required if the potential for organic growth was exhauseted or limted.The country''s banking statistics showed that 50 per cent of the families were yet to have a banking connection,leaving immense scope for branch expansion, the unions said.Worldwide experiences did not support the argument that mergers would bring in greater efficiency as several behemoths had collpased during the financial turmoil that shook the west in recent past, it said.When SBI took over seven associate banks, set up by erstwhile princely states, its sole objective was to expand the branch network all over the country and enhance priority lending, which helped millions of people, it said.The need of the hour was to increase the number of branches of SBI and associate banks and the merger move would cut short the number of branches, the unions said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
