The announcement of the merger of Bank of
Baroda, Vijaya Bank, and Dena Bank has sent the fear of job loss to all the
employees of the three banks. The shareholders were also confused. Recently,
the banks have finalised their share-swap ratio. However, the employees have
been protesting against the move. Minister of State for Finance Shiv Pratap
Shukla in Rajya Sabha on Tuesday clarified about the rationalisation of staff
and branches after the merger of the banks. In a written reply in the Upper
House, Shukla stated that the government had approved a framework for proposals
to amalgamate PSBs through an Alternative Mechanism (AM) with a view to
facilitate consolidation among public sector banks to create strong and
competitive banks.
After
obtaining RBI inputs, the government has notified the scheme of amalgamation
for Bank of Baroda, Vijaya Bank and Dena Bank. Shukla said that not even a
single employee of any of the three banks will lose job.
"The
scheme of amalgamation protects employee interests by providing that every
serving employee of the amalgamating banks shall be an employee of the
amalgamated bank and shall continue to work in accordance with Board-approved
terms and conditions of service, and that the Board of the amalgamated bank
shall ensure that the interests of all employees of the amalgamating banks are
protected," said the minister.
Explaining the banks'
turnaround plans, the minister said that out of the three aforesaid banks,
turnaround plans were approved by the Board of Dena Bank in the second quarter
of financial year 2017-18.
The Banking Companies
(Acquisition and Transfer of Undertakings) Acts of 1970 and 1980 empowers the
Central Government, in consultation with the Reserve Bank of India (RBI), to
make a scheme, inter alia, for the amalgamation of any nationalised bank with
any other nationalised bank or any other banking institution.
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