BoB-Dena-Vijaya Bank merger will lead to job cuts: AIBEA

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.

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.

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.

3 thoughts on “BoB-Dena-Vijaya Bank merger will lead to job cuts: AIBEA

  1. Why Issue of Pension updation & option for Pension taken up with this? As a result, I feel this is more political than employees problem.

  2. Strike is required for wage revision, medical benefits to retired employees , revision of pension for retirees etc.
    Now no government bank or private bank is opening branches in rural placed as more people are shifting to cities. By merger no loss for employees. SBI not removed any employees after merger . Merger reduces the unhealthy competition in banks. First solve the wage revision and retirees problems.
    Unions are not taking care of employees or retirees. They are Hand in Gloves with management.

Leave a Reply

Your email address will not be published. Required fields are marked *