VIJAYAWADA: Members of All India Vijaya Bank Officers’ Association met Chief Minister N Chandrababu Naidu and submitted opposing the amalgamation of banks. The Union government on September 17 had announced unilaterally the amalgamation of three public sector banks — Vijaya Bank, Dena Bank and Bank of Baroda — bypassing Parliament, Reserve Bank of India, respective boards of the banks and other stakeholders.
In this regard, All India Vijaya Bank Officers’ Association affiliated to All India Bank Officers’ Confederation (AIBOC), representing 3.25 lakh bank officers’ in the country protested against the amalgamation. The officials said the move to merge Bank of Baroda (B0B), Dena Bank and Vijaya Bank is anti-people and will not help solve the bad loan problem facing the banking system.
Given that recovery from bad loans is the need of the hour, the association’s contention is that it will take a back seat once amalgamation between the three public sector banks is initiated as their top brass will be bogged down with the administrative nitty-gritties of consolidation.
“This (proposed amalgamation) move will not address public sector banks’ present problem of non-performing assets. At a time when we need more branches and financial inclusion, the amalgamation will lead to closure of branches, which is not good for the development of the country and is anti-people,” said
All India Vijaya Bank Officers’ Association general secretary K Prakash Rao.
Association State president MP Sudhakara Rao pointed out that State Bank of India’s bad loan woes got exacerbated after it acquired five associate banks. He said the argument that mergers will help tackle bad loans does not hold water. As part of the ongoing agitation programme on Thursday, bank the officers met the Chief Minister and submitted the memorandum opposing the amalgamation.