BoB-Dena-Vijaya Bank Merger May Lead to Job Cuts !

Bankers Union are in thought that the proposed merger of Bank of Baroda with Vijaya Bank & Dena Bank will lead to massive job cuts. The All India Bank Employees Association (AIBEA) has called for a nation-wide strike on December 26 opposing the merger of Bank of Baroda, Dena Bank and Vijaya Bank. The 11th Bipartite Wage Revision for Bankers are also pending for long.

Bankers Union said the move made by government for merging of these banks are  unwarranted as it would not be beneficial to the economy and the people at large. The mergers of the banks would “surely” result in the closure of branches and would endanger job security.

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AIBEA General Secretary said that “The merger will also affect the interests of employees, their jobs and job security. The move would also affect employment opportunities in the banking industry”. Noting that several villages were yet to receive banking services, he said, “There is a huge exclusion of people. Banks need to be expanded. No need for consolidation.”

AIBEA has referred the State Bank of India merger with associates bank and said that “There is no evidence to this conclusion. Last year, six banks were merged with SBI. But SBI (State Bank of India) has not become any bigger.” After merger of the six banks with SBI, the non-performing assets have further gone up to Rs 2.25 trillion. Hence, it is also a wrong presumption.

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Union has raised doubt on government reason for merger and said that the total NPA in Bank of Baroda, Dena Bank and Vijaya Bank was Rs 800 billion, whether these bad loans would automatically be recovered if these banks were merged.

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