One-day strike by bank-employees on December 16 opposing merger of State Bank of Indore with State Bank of India is not proper. Rather a smart beginning should be made by merging all subsidiaries of State Bank with State Bank of India in one go. Thereafter process of merging of comparatively smaller banks in four major nationalised banks should begin after careful planning. Reducing number of banks will largely reduce need of clearing-operations where funds could be transferred by bank-transfers rather than clearing.
Bulk of banking-business is in urban areas. Many branches of various public-sector banks have negligible business because of too many bank-branches in the vicinity. Reducing overheads by merger of public-sector banks will increase their profitability thereby contributing more to national resources and to check tax-burden. With secured service or suitable compensation through Voluntary Retirement Scheme, employees of nationalised banks have no reason to oppose merger of public-sector banks.
Subhash C. Agrawal
Delhi