Bank Officers’ Associations to launch country wide 2-day bank strike against ‘forced merger’ of Public Sector Banks

September 12: Four Officers’ Associations- AIBOC, AIBOA, INBOC and NOBO representing nearly entire officers’ fraternity of banking industry have launched a series of programmes against the Government’s proposal of merger of Public Sector Banks and have demanded expeditious wage revision without any pre-condition. Associations are embarking upon protests / demonstrations / agitation / submission of memorandum to various authorities across the country, which would culminate into two days’ all India strike from midnight of 25 to midnight of 27 September 2019 followed by an indefinite strike from second week of November 2019, in case there is no positive response from the appropriate authority.

The Officers’ Associations also urged settlement of various pertinent issues pertaining to banking industry like introduction of 5-day week. reduction of cash transaction hours and regulated working hours: against undue interference in existing procedure of vigilance cases by outside agencies under amended provisions of Prevention of Corruption Act. 2018: improvement in pension for retirees as per RBI formula and family pension, medical insurance to retirees at par with the serving employees: adequate recruitment: scrapping of NPS: and stopping of harassment of officers under specious plea of non-performance. The associations have also raised an important customer-centric issue – i.e. reduction in burgeoning service charges for customers imposed upon by banks.

Finance Minister Nirmala Sitharaman announced a big consolidation of public sector banks: 10 public sector banks to be merged into four. Under the scheme of amalgamation, Punjab National Bank, Oriental Bank of Commerce and United Bank ((PNB will be the anchor bank) will be merged into a combined entity with a total consolidated business of Rs 17,95,000 crore. Likewise, Union Bank, Andhra Bank and Corporation Bank (anchor bank – Union Bank of India) will be merged into a single entity that will have a combined business of Rs 14,59,434 crore. Canara Bank and Syndicate Bank (anchor bank – Canara Bank) will separately be combined into a single bank that will command a combined business of 15,20,295 crore.

The Associations in a joint press release stated, “The notion that merging two or more banks can create a larger, more viable and profitable bank and somehow magically increase shareholder value is a prejudiced idea, which does not have any basis either in economic theory or in empirical evidence. The decision of merger will act as a major impediment to the objective of Government of achieving a $ 5 trillion economy as very functioning of public sector banks will be impeded.”

They further argued that, “Density of bank branches is much lower in India, when compared to developed and developing economies of the world. There are nearly 5000 banks operating in USA, 2000 in Germany, 300 in UK where India has only 86 banks, out of which only 4=9 banks are public sector banks. Contradicting its own logic, Government is granting license to small entities like Payment Banks, NBFCs, Fintech Companies etc. From this, it is clear that the true intention of the Government is much beyond consolidation. It is to push the customers to private sector banks, NBFCs— which would certainly be to the detriment of the interest of the common man.”

The press release further hinted at the government favoring big corporate houses. It was stated that, “It is unfortunate that Government did not attempt to strike at the root when the trade unions demanded publishing of list of defaulters and making willful default a criminal offence. The stressed assets were not revealed in the guise that revelation affects economic sovereignty and business interest of large corporate houses.”

They alleged that the GOl-IBA combine has been turning a deaf ear to the legitimate demands of the bankers for early wage revision based on their charter of demand, upgradation of pension, improvement of family pension, scrapping of National Pension System (NPS) and so on. They gave a clarion call wherein they stated, “Public sector banks are nation building instrument. They are to be protected, preserved and promoted.”

Also Read: Finance Minister announces series of State-run Bank mergers, AIBOC condemns the merger