Friday, November 6, 2009

Banks union threatens to go on strike in protest to State Bank of Indore- SBI merger

Although the merger of State Bank of Indore with State Bank of India (SBI) had got green signal but the All India Bank Employees’ Association (AIBEA) is against this merger, thus in protest of this merger AIBEA has proposed to go on a one-day strike by November-end. According to union the merger is a “violation” against the agreement, and if the merger is pursued then it might think of going on an indefinite strike.

The union took decision to go on strike after SBI submitted a copy of ‘Scheme of Acquisition of State Bank of Indore by SBI’ to the Bombay Stock Exchange.

CH Venkatachalam, general secretary, AIBEA told Business Standard, earlier in June, this year the labour minister had held meeting with the bank management in which it was told not to go ahead with the merger, both the management and the union representatives agreed on this.

Venkatachalam added, “It’s clearly a violation by the SBI management, we have decided to go on a one-day strike by the end of this month against the decision”.

The union representatives will be meeting on Thursday or Friday to finalize the date of strike.

“I am not ruling out an indefinite strike,” he added.

He informed the bank (State Bank of Indore) is doing good business, even better than SBI, so why to go for merger? As State Bank of Indore provides support to the regional development projects, so, Venkatachalam feels if the bank is merged, then it will loose capability of supporting regional development.

He told comparatively the business per employee at State Bank of Indore is Rs 7.01 crore, while SBI figures stand to Rs 5.56 crore only. Likewise the advances per employee for State Bank of Indore accounts to Rs 3.43 crore as against Rs 2.63 crore for SBI, whereas deposits per employee of the former figures to Rs 4.50 crore against Rs 3.40 crore for the latter, and also in the priority sector lending it is 34 per cent for State Bank of Indore as against 26 per cent for SBI.

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