Move to merge away State Bank of Patiala and other four Associate Banks with SBI is shocking: Ashok Malhan

Ludhiana, June 16, 2016: State Sector Bank Employees Association (SSBEA) has given a call for agitation against Central Government`s in principal approval for Associate Banks - SBI merger proposals. Today, a massive demonstration was held in front of State Bank of Patiala, Zonal office, Miller Ganj, Ludhiana opposing Merger of Associate Banks with SBI.

Com. Ashok Malhan, Vice President, All India State Bank of Patiala Employees Federation, Com. Pawan Thakur, President, Com. Harvinder Singh, Sr. Vice President, Com. Rajesh Verma, Vice President and Com. Ashwani Singla, Organizing Secretary, Punjab Bank Employees Federation (Ludhiana) addressed the bank employees.

Com. Ashok Malhan while addressing the bank employees said that on 15th June 2016, Central Government gave its in-principal approval to for Associate Banks – SBI merger proposal. The move to merge away ‘State Bank of Patiala’ and other four Associate Banks with State Bank of India is shocking. On May 17 the Director Boards of Associate Banks forced by the major shareholder State Bank of India, have given approval for initiating negotiations with regard to acquisition of business and assets and liabilities of the Associate Banks by SBI. Protesting over this move, Employees went on Strike on May 20 as per the call of All India Bank Employees’ Association and State Sector Bank Employees’ Association, the apex organization of the Unions in the Associate Banks. Our Unions are already on the agitation path demanding dropping of the merger moves and delinking of Associate Banks from SBI. These proposals to close down the Associate Banks and take over by State Bank of India are totally undesirable and unwarranted. The Associate Banks have been doing yeomen services in their respective areas and in fact, in most of the parameters, their performance is far better than even the SBI. Delinking the Associate Banks from SBI and making them independent Banks would enable them to grow and make them much bigger, stronger and more efficient.

With ninety nine years of service to the people and with national vision and presence, State Bank of Patiala (SBP), the one and only public sector bank having headquarters in Punjab, has grown in size, with 1337 branches and offices and Rs.1,91,729 crore business. With multifarious products and services, the Bank is catering to the needs of every segment of the society engaged in various trade, business and professions. As Employees, we are committed to consistent and comprehensive service for the benefit of people and the nation, for improving the living standards of common masses and overall socio-economic development. We are committed to the motto that Bank Deposits being the hard earned savings of the common people must be utilized for the collective welfare of the people and nation.

There is a great scope and need for our banks to expand. Hence at this juncture, what our country needs is banking expansion and not consolidation and mergers. What we need is strong and vibrant banks and not necessarily big banks. We can strengthen our banks even without merger of banks. Hence there is need is to open more and more branches of the banks. But mergers and consolidation would only result in closure and reduction of bank branches. The Associate Banks are the Bankers for the State Governments of their respective headquarter places, handling all the Government/Treasury operations and raise up to the needs of the State Governments whenever required. Also the tax paid by these Associate Banks enhances the Revenue of the respective State Governments, utilizing the same for the welfare of the people at large in their respective States.

All India State Bank of Patiala Employees’ Federation along with AIBEA and SSBEA is demanding from the Government of India to de-link all the Associate Banks from State Bank of India, thus according freedom, functional autonomy and operational flexibility.

We are hopeful and confident that the people, Bank Beneficiaries and Customers, political-trade union-social organizations etc. of the State of Punjab, Haryana, Himachal and outside will oppose the merger moves and join the movement for sustaining the identity of the Bank and strengthening its independent operations with total functional freedom relating to policies, programmes, products, processes and services.