It refers to justified demand raised by the All India Bank Employees Association (AIBEA) for merging remaining five associate banks of State Bank of India (SBI) namely State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad, State Bank of Patiala and State Bank of Bikaner and Jaipur into one entity SBI. State Bank of Indore has already been merged with SBI.
Unfortunately India is country where files move ultra-slowly even for simple decisions having consensus amongst all concerned. Even Union Finance Minister has favoured the idea which will heavily cut down unnecessary overheads. Merger may also result in closure of nearing bank-branches thus further saving money because now Reserve Bank of India (RBI) in August 2015 gave liberty to banks for merger, shifting or closure of their branches in urban areas without seeking prior RBI permission.
Reducing overheads by merger of SBI-subsidiaries in SBI will increase profitability of oldest and largest public-sector bank thereby contributing more for national resources. Rather it will lead to merger of other public-sector banks where with secured service or suitable compensation through Voluntary Retirement Scheme, employees of nationalized banks have no reason to oppose merger of public-sector banks. Moreover in case of any such mega-merger, further recruitments in banks can be suspended till the surplus staff so created because of such mega merger-plan is suitably accommodated.
Otherwise also, presently at some branches with significant work-load, shortage of staff is faced which will then be overcome by utilization of staff found surplus out of the mega merger-plan. All this does not suggest for any forced retirement or termination of any bank-employee unless so desired by the employee under Voluntary Retirement Plan. Merger of public-sector banks and closure of branches in urban areas with insignificant business can also pave way for much-needed full-time seven-day banking where banking-staff can be given two (rather than one and a half) weekly-offs by rotation.
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