House nod for merger of State Bank of Saurashtra with SBI
Parliament on Friday post facto approved the merger of the State Bank of Saurashtra (SBS) with State Bank of India (SBI) with Rajya Sabha passing it by voice vote amid opposition from Left parties.
New Delhi: Parliament on Friday post facto
approved the merger of the State Bank of Saurashtra (SBS) with
State Bank of India (SBI) with Rajya Sabha passing it by voice
vote amid opposition from Left parties.
"The pay and allowances and service conditions of the
employees of SBS will not be altered to their disadvantage,"
Minister of State for Finance Namo Narain Meena said as the
House approved the two bills to given effect to the merger
that took place in 2008.
The bills to repeal the State Bank of Saurashtra Act and
amend the SBI (Subsidiary Banks) Act were passed as CPI-M
expressed its apprehension over the pay parity and other
benefits of the transferee bank employees in the merged
Opposing the Bill, Tapan Sen (CPI-M) said the merger would
leave the Bank of Saurashtra employees in a lurch and lead to
shrinking of rural branch expansion programme.
Allaying his fears, Meena said no branches of SBS are
being closed as a result of the merger. "There should be no
apprehension on this count", he said.
The Minister said the Government has a broad agenda of
financial inclusion targetted towards providing better banking
The merger would rather lead to more ATMs and more
branches, he said adding services would improve.
The associate bank was merged with the SBI in October 2008
following resolutions passed by the boards of both the banks.
The amendments, though a legislative formality, were
opposed by CPI-M and CPI which saw in the merger a larger
design to privatise the state-owned banking sector.