There will not be single job loss due to merger of banks, Nirmala Sitharaman assures

Ahead of Sitharaman’s assurance to bank employees, former Prime Minister Manmohan Singh said the state of the economy was deeply worrying and insisted that last quarter’s GDP growth rate of 5% signals that the country is in the midst of a prolonged slowdown.

Written by September 1, 2019 18:31

New Delhi: Finance Minister Nirmala Sitharaman today calmed fear of job loss following the merging of public sector banks, saying it would not lead to any. “I have very clearly underlined the fact that there shall not be one employee removed, not at all,” she told reporters in Chennai two days after announcing that 27 state-run banks will be merged to form 12 strong banks.

On Friday, Sitharaman had unveiled a mega plan to merge 10 public sector banks into four as part of plans to boost government’s $5 trillion economy dream. On the same day, Central Statistics Office (CSO) released figures that showed the India’s gross domestic product (GDP) grew at just 5 per cent, the slowest in six years.

The All India Bank Employees Union has said the merger would lead to closure of banks and job losses.

The Bharatiya Mazdoor Sangh (BMS), labor wing of the RSS has also criticised the bank merger plan saying it was done without any study would only protect interests of corporate houses.

“Absolutely, ill informed. I want to assure every union in every one of these banks to please recall what I have said last Friday. When we spoke about amalgamation of banks I have very clearly underlined the fact that there shall not be one employee removed. Not at all”, she said at a press conference.

The government further said the move will reposition PSUs to take the economy to the $5-trillion mark, with wide-ranging reforms, financially stronger lenders and stronger governance.

Ahead of Sitharaman’s assurance to bank employees, former Prime Minister Manmohan Singh said the state of the economy was deeply worrying and insisted that last quarter’s GDP growth rate of 5% signals that the country is in the midst of a prolonged slowdown. The senior Congress leader also blamed “all-round mismanagement by the Modi government” for the economic slowdown.