'Not even one employee will be removed': FM Sitharaman allays fears of job loss in mega-merger of PSBs

Amid opposition from bank employees, Union Finance Minister Nirmala Sitharaman on Sunday allayed the concerns of job losses in the wake of the mega-merger of public sector banks (PSBs)

Talking about the economy, which reported a sluggish growth of 5% in the last quarter of the current financial year, Sitharaman said the government was prepared to respond to the industry's "needs and suggestions."

On Friday, the Central government announced merger of 10 public sector banks (PSBs) into four larger banks with countrywide networks. The move, Sitharaman said, was aimed at boosting credit and revive economic growth in the nation's bid to become a US $5 trillion economy in the next five years.

The announcement of mega-merger has triggered fears among the bank employees who fear that some of the jobs may be cut after the merger. Some of the bank employees unions even held protests across the country on Saturday to oppose the merger. 

"Absolutely ill informed. I want to assure every union in each one of these banks to recall what I said last Friday. When we spoke about the amalgamation of banks, each time I have very clearly underlined the fact that not even one employee shall be removed," she said while addressing media persons in Chennai.

"We are not looking at any employee being removed. I am reiterating that. Therefore, they need not have any concern on this issue," said the Finance Minister, adding that there is no closure of any bank. "No bank is being asked to do something different from what they were doing earlier."

Banks part of the merger process are: Punjab National Bank, Oriental Bank of Commerce, United Bank, Canara Bank, Syndicate Bank, Union Bank of India, Andhra Bank, Corporation Bank, Indian Bank and Allahabad Bank.

The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank of India will create the second-largest banking network in the country with 11,431 branches.

Besides, Canara Bank will be merged with Syndicate Bank to form the fourth largest Public Sector Bank with a business of Rs 15.20 lakh crore.

As part of the mega-merger, Union Bank of India will be merged with Andhra Bank and Corporation Bank to become the fifth-largest PSB. 

Indian Bank will merge with Allahabad Bank to form the seventh-largest Public Sector Bank with a business of Rs 8.08 lakh crore.

After the consolidation of these banks, India will now have 12 Public Sector Banks from 27 Public Sector Banks (PSBs) in 2017.

(With ANI inputs)