The Hindu : Kerala / Kochi News : Bank unions do not foresee merger move

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Kerala - Kochi

Bank unions do not foresee merger move

R. Ramabhadran Pillai

‘There is no reason to believe that the government will take up the merger with urgency.’

KOCHI: The major associations of bank employees do not foresee an immediate move for merger of the State Bank of Travancore (SBT) with the State Bank of India (SBI), though the merger of associated banks was one of the priority considerations of the previous United Progressive Alliance (UPA) government.

Though a new UPA government is in the saddle, this time without the support of the Left parties, there is no reason to believe that the government will take up the merger with urgency, according to leaders of the unions.

The merger of the State Bank of Saurashtra with the SBI recently had brought the issue into sharp focus. A keen analysis of the underlying factors will make it clear that similar conditions are non-existent in the case of the Kerala-based bank, V.J. Johny, State convener of the United Forum of Bank Unions, a conglomeration of nine unions, told The Hindu. The SBI had 100 per cent shareholding in the State Bank of Saurashtra, while the SBT is not wholly owned that way, he said.

The Gujarat-based bank had incurred losses and the government had been infusing capital for its smooth functioning, he said. The bank had been linked to the deals of Harshad Mehta, who was involved in the stock market scam of 1992. The SBT, on the other hand, has maintained a clean track record and been making profits, he said.

Banking at the global level has faced a severe crisis and the government is not expected to give another push to the reforms agenda immediately, he said.

K.S. Krishna, assistant secretary of the SBT Employees Union, said there was no apprehension among the employees about an immediate move for a merger, though the union was remaining vigilant. “It is a politically sensitive issue and there are enough lessons in history on the political outcome if unpopular decisions are pushed through,” he said.

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