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Wednesday, December 11, 2019

‘Merger of PSBs will not lead to job losses’

In August, the government announced a mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders with robust balance sheets that can be used to boost credit and spur growth.

By: Express News Service | New Delhi | Updated: December 4, 2019 5:26:26 am
bank merger, pnb with ubi, allahabad bank with indian bank, kolkata based bank, anurag thakur, economic reforms, parliament, lok sabha, indian express During the Question Hour, Minister of State for Finance Anurag Singh Thakur said lending and other banking services to eastern states will be improved after two Kolkata-based banks are merged. (File photo)

The government on Tuesday assured the Rajya Sabha that merger of 10 public sector banks will not lead to any job losses and employees’ interest will be protected.

In August, the government announced a mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders with robust balance sheets that can be used to boost credit and spur growth.

During the Question Hour, Minister of State for Finance Anurag Singh Thakur said lending and other banking services to eastern states will be improved after two Kolkata-based banks are merged.

While United Bank of India will be merged with Punjab National Bank, Allahabad Bank will be amalgamated with Indian Bank. These two banks are headquartered in Kolkata.

“Merger of banks will strengthen the lending capacity. It has been ensured that no person loses job. The employees of merging banks will benefit the maximum.,” he said.

“We have taken enough precaution,” he said, adding that Narasimham Committee in 1998 and Leeladhar Committee in 2008 recommended amalgamation of the banks. “Amalgamating banks was advised to duly factor in and draw road maps for converging IT systems and HR and to put in place institutional arrangements to ensure expeditious integration,” Thakur said.

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