Banks’ merger : no need of job loss fear, says Nirmala

Banks’ merger : no need of job loss fear, says Nirmala

Agency News

Chennai, Sep 1 : Union Finance Minister Nirmala Sitharaman on Sunday termed as 'absolutely ill-informed' fears of job losses in view of the proposed amalgamation of public sector banks.

Talking to reporters here after addressing the Customs, GST, and Income Tax department officers, she said not even one employee will be removed following the amalgamation of banks, announced by her on Friday to create lesser and stronger global-sized lenders to boost economic growth, while announcing a capital infusion of Rs 70,000 crore to public sector banks. “Absolutely, ill informed', she said, when asked about various unions of banks opposing the merger move as it would lead to job losses.

'I want to assure every union in everyone of these banks to please recall what I have said last Friday...when we spoke about amalgamation of banks, I have very clearly underlined the fact that there shall not be job cuts. Not at all, `` she added. Assuring that there would not be any closure of banks, Ms Nirmala said the government was infusing more capital to the banks and they would continue to do more of what they were doing earlier.

"No bank is being asked to do anything different from what they were doing earlier," she said.

On AIBEU's fear that Indian Bank might face closure following its merger with Allahabad Bank, the Union Finance Minister said Indian Bank would be the anchor bank after the merger. 'When a bank receives capital, it is given for them to function more with what they are expected to do as core business which is to attract business and lend', she added.

"Second, another bank in this region is Indian Overseas Bank which continues without any amalgamation added to it. It is also something you should keep in mind.", she said. To a query on whether there was any sort of economic slowdown now in the country, Ms Nirmala said the government was responding to sectorally based on their requirement.

"Every sector of the Indian economy when it approaches us, we hear them out for solutions, what they want, what they expect from the government and we are responding to them', she added.

'I have already done it twice and I will do more number of times. Every industry which has approached me I will respond, `` she said. On the slow down in the auto sector, she said it was due to transition from BS-IV norms to BS-VI norms. 'That is not a government decision, but a decision of the Supreme Court that was not made yesterday, but made two years back, fixing March 31, 2020 deadline for BS-IV vehicles'. 'It will be decided by the GST council', Ms Nirmala said when asked about the GST rate cuty for auto industry. (UNI)