The Hindu : Karnataka / Bangalore News : Call for merger of banks opposed

Online edition of India's National Newspaper
Friday, Nov 10, 2006
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Karnataka

Karnataka - Bangalore

Call for merger of banks opposed

Special Correspondent

`Mergers and acquisitions may make banks bigger, but not necessarily stronger'

Bangalore: The Finance Ministry's repeated insistence on merger of public sector banks to face global competition amounts to forcing them to veer away from the designated role of helping the common people of the country, C.H. Venkatachalam, general secretary, All-India Bank Employees' Union, has said.

Speaking after inaugurating the 24th conference of the Syndicate Bank Employees' Union here on Wednesday, he said mergers and acquisitions may make banks bigger, but not necessarily stronger.

In a scenario where only 30 per cent of the real needs of the agricultural sector had been met, it was counterproductive to talk of global competition, he said.

Talking about the challenges thrown up by the liberalisation of the market, he said the Government was making every effort to privatise banking even as it commended the strides made by nationalised banks.

The Tarapur Committee had recommended reduction of government shares in banks to just 33 per cent, which amounted to total privatisation, Mr. Venkatachalam said. The banks had played a critical role in mobilising public money from 25 lakh crore people, and this money should be used for their welfare.

Foreign investment

Inviting unbridled foreign investment amounted to frittering away public money. "We are for reforms, but reforms for the benefit of people," he said.

Bank employees would be forced to go on strikes as long as the Government adopted an "ostrich-like attitude" to their problems and the larger issues affecting the banking sector, he warned. Syndicate Bank chairman and managing director C.P. Swarnkar spoke about the strides made by the bank with a growth rate of about 50 per cent every year.

The bank had launched several schemes to attract people in the age group of 18 to 35, he said.

The function was attended by H. Mahadevan, deputy general secretary, All-India Trade Union Congress; J.P. Sharma, president, and Anil Srivastava, general secretary, Syndicate Bank Employees' Union; and George Joseph, executive director, Syndicate Bank.

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