UFBU opposes merger of Banks – Will go on strike..

UNITED FORUM OF BANK UNIONS

(AIBEA-AIBOC-NCBE-AIBOA-BEFI-INBEF-INBOC-NOBW-NOBO)

Singapore Plaza, 3^rd Floor, 164, Linghi Chetty Street, Chennai – 600 001

Tel. No. : 044-2535 1522, 6543 1566, Fax : 044-2535 8853, 4500 2191

 E Mail: chv.aibea@gmail.com ,  ufbu2007@gmail.com   M -  98400 89920

28^th  April, 2011

Press Release :-

By C.H.Venkatachalam, Convener, UFBU

UFBU  opposes merger of Banks – Will go on strike  :-

Our attention has been drawn to a statement of the Chairman of State Bank of India that the Bank intends to continue with the consolidation drive within SBI Group and would initiate steps to gobble up Associate Banks.

From UFBU, we strongly oppose any such move and UFBU  would resort to intensified strike / agitational programmes if any steps are taken in that direction by the Bank or the Government or the Reserve Bank of India.

In our country, in the context of the need for financial inclusion of the masses, bank expansion is the priority need and bank consolidation is a retrograde move.

Further, the Associate Banks / Subsidiary Banks have their own historical and geographical relevance.  They have been very successful Banks.  In some States, Associate Banks are doing larger volume of business than even SBI.  In all parameters of performance, Associate Banks are far efficient than SBI.  In fact, the growth and contributions of Associate Banks have been dwarfed because of the undue control of SBI on them.  Left to themselves, they would have grown more.

There is absolutely no need for consolidation and merger of Associate Banks with SBI.  Hence UFBU strongly opposes any such move and would resort to serious types of protest actions and strikes if any step is taken in this regard.

C.H.VENKATACHALAM

CONVENER