SBS merger with SBI formalised as RS passes bill
19 Dec 2009
1
Parliament yesterday gave post facto approval to the merger of the State Bank of Saurashtra (SBS) with State Bank of India (SBI), with the Rajya Sabha passing the relevant bills by voice vote amid opposition from Left parties.
''The pay and allowances and service conditions of the employees of SBS will not be altered to their disadvantage,'' minister of state for finance Namo Narain Meena said as the house approved the two bills to give effect to the merger that took place in 2 008.
The bills to repeal the State Bank of Saurashtra Act and amend the SBI (Subsidiary Banks) Act were passed as the Communist Party of India (Marxist) expressed apprehension over the pay parity and other benefits of the transferred bank employees in the merged entity.
Tapan Sen of the CPI(M) said the merger would leave Bank of Saurashtra employees in the lurch and lead to shrinking of rural branch expansion programme. Allaying his fears, Meena said no branches of SBS are being closed as a result of the merger. ''There should be no apprehension on this count,'' he said.
The minister said the government has a broad agenda of financial inclusion targeted towards providing better banking facilities. The merger would rather lead to more ATMs and more branches, he said, adding services would improve.
The associate bank was merged with the SBI in October 2008 following resolutions passed by the boards of both the banks. The amendments, though a legislative formality, were opposed by the CPI(M) and CPI, which saw in the merger a larger design to privatise the state-owned banking sector.
''The pay and allowances and service conditions of the employees of SBS will not be altered to their disadvantage,'' minister of state for finance Namo Narain Meena said as the house approved the two bills to give effect to the merger that took place in 2 008.
The bills to repeal the State Bank of Saurashtra Act and amend the SBI (Subsidiary Banks) Act were passed as the Communist Party of India (Marxist) expressed apprehension over the pay parity and other benefits of the transferred bank employees in the merged entity.
Tapan Sen of the CPI(M) said the merger would leave Bank of Saurashtra employees in the lurch and lead to shrinking of rural branch expansion programme. Allaying his fears, Meena said no branches of SBS are being closed as a result of the merger. ''There should be no apprehension on this count,'' he said.
The minister said the government has a broad agenda of financial inclusion targeted towards providing better banking facilities. The merger would rather lead to more ATMs and more branches, he said, adding services would improve.
The associate bank was merged with the SBI in October 2008 following resolutions passed by the boards of both the banks. The amendments, though a legislative formality, were opposed by the CPI(M) and CPI, which saw in the merger a larger design to privatise the state-owned banking sector.
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