Bank Unions To Protest Against PSU Banks’ Merger Decision

A bank employee unions' federation has called upon bank unions to hold demonstrations tomorrow to protest against the merger of three state-run lenders —Bank of Baroda, Vijaya Bank and Dena Bank—a union leader said today.

The demonstration has been called under the aegis of the United Forum of Bank Unions. The All India Bank Employees’ Association said in a statement that it has learnt that the boards of these banks have approved the agenda and hence they may proceed with the merger.

"The issue as discussed in the United Forum of Bank Unions’ meeting held on Sept. 29, and it has been decided to call upon all our unions to hold protest demonstrations," it said.

The All India Bank Employees’ Association said that the issue will be further discussed in the ensuing United Forum of Bank Unions meeting to be held on Oct. 12 in Mumbai and the further course of action will be decided upon.

Separately, the National Organisation of Bank Workers (an industrial federation of Bhartiya Mazdoor Sangh), in a statement said that it will hold demonstrations across the country tomorrow to protest against government's decision to merge the three banks. It said it doesn’t agree with the government's stance of creating six-seven large banks by merging existing banks.

Consolidation by way of merger will not solve the problem of non-performing assets in the banking system, it said.

The boards of three state-run banks Dena Bank, Bank of Baroda, and Vijaya Bank have approved the proposed merger. The amalgamation of these three banks will create country's second-largest public-sector undertaking lender by assets and branches.