Officers' union requests Narendra Modi to defer mega bank merger amidst coronavirus pandemic

Bank officers' union on Wednesday requested Prime Minister Narendra Modi to defer mega-merger exercise of banks in view of coronavirus outbreak

Press Trust of India March 26, 2020 11:49:29 IST
Officers' union requests Narendra Modi to defer mega bank merger amidst coronavirus pandemic

New Delhi: Bank officers' union on Wednesday requested Prime Minister Narendra Modi to defer mega-merger exercise of banks in view of coronavirus outbreak.

Banking services across the country are impacted due to the effect of COVID-19 as a near shut down is being observed across the country.

In a letter written to the Prime Minister, the All India Bank Officers' Confederation (AIBOC) said "the finance minister yesterday announced a slew of measures in view of the deleterious effect of the contagion. We are also expecting an extension of closing related activities and the revision of the closing date itself from 31 March to 30 June, which is the need of the hour."

In this context, AIBOC would like to draw your attention that the process of amalgamation of 10 public sector banks scheduled with effect from 1 April, 2020 also be deferred as a conclusion would be a difficult proposition during the lockdown.

Officers union requests Narendra Modi to defer mega bank merger amidst <span class=coronavirus pandemic" width="380" height="285" />

Representational image. Reuters.

The entire exercise of the merger process involves a huge number of tasks requiring constant interaction and congregation of the employees of the anchor and target banks and representatives of outsourced consultants, agencies etc.

These tasks in the current state of affairs are unwarranted particularly in view of the 'break the chain' effort undertaken by the government to combat the spread of the fatal disease, it said.

If the merger process is initiated, thousands of bank employees and officers and executives involved in the process will be exposed to the risk of their lives
and in turn, may cause further contamination to other people who need to be interacted with.

"It may be argued that these activities can be carried out through video conferencing, but it should be borne in mind simultaneously that these are complex tasks, where apart from video conferencing, several meetings will also be required to be held among the rank and file of the banks involved in order to ensure accomplishment of the job of assimilation and integration of the systems and processes," it said.

Click here to follow LIVE updates on coronavirus outbreak

"As a progressive trade union, we strongly feel that the priority before the country is to come out from the colossal threat of loss of precious human lives, which is unprecedented in independent India and repair the damages being caused to the national economy as a natural fallout of the coronavirus endemic," it said.

Earlier this month, the Union Cabinet approved the consolidation of 10 public sector banks (PSBs) into four with effect from 1 April, 2020.

As part of the exercise, the United Bank of India and Oriental Bank of Commerce would be merged with Punjab National Bank, making the proposed entity the second largest public sector bank.

It was decided to merge Syndicate Bank with Canara Bank, while Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank are to be consolidated with Union Bank of India.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Recent surge in Maharashtra offers clues of how COVID-19 pandemic may move through rest of India
India

Recent surge in Maharashtra offers clues of how COVID-19 pandemic may move through rest of India

In October 2020, Mumbai appeared to show the future pathway — and potential end-point — for the COVID-19 pandemic. That certainty has been irreparably dented

COVID-19 vaccine rollout by India has 'rescued the world' from pandemic, says Dr Peter Hotez
Health

COVID-19 vaccine rollout by India has 'rescued the world' from pandemic, says Dr Peter Hotez

Dr Hotez, dean of the National School of Tropical Medicine at Baylor College of Medicine in Boston, is considered the authority on vaccinations

AstraZeneca vaccine is 80.4%, Pfizer vaccine is 71.4% effective in elderly people: Study
science

AstraZeneca vaccine is 80.4%, Pfizer vaccine is 71.4% effective in elderly people: Study

Although the vaccine developers and WHO insist that the vaccine is effective among people aged over 65, several countries advise against administering it.