Bank Mergers Won't Lead To Job Losses, Nirmala Sitharaman Assures

"I have clearly underlined the fact that there shall not be one employee removed," Nirmala Sitharaman said in Chennai.

Bank Mergers Won't Lead To Job Losses, Nirmala Sitharaman Assures

Nirmala Sitharaman had announced Centre's mega plan for bank mergers. (PTI)

Highlights

  • Nirmala Sitharaman had announced Centre's mega plan for bank mergers
  • "Not one employee will be removed," she assured amid job loss concerns
  • The plan is part of Centre's efforts to expand to a $5 trillion economy
Chennai:

Union Finance Minister Nirmala Sitharaman today calmed apprehensions of job losses following the merging of public sector banks, saying it would not lead to any. "I have very clearly underlined the fact that there shall not be one employee removed, not at all," she told reporters in Chennai two days after announcing that 27 state-run banks will be merged to form 12 strong banks.

It had triggered apprehension, with the All-India Bank Employees' Union saying the amalgamation would lead to closure of banks besides job losses. Questions of pink slip after the amalgamation are absolutely "ill-informed," Ms Sitharaman told reporters while on a visit to Chennai.

On Friday, Ms Sitharaman unveiled a mega plan to merge weak public sector banks with the strong ones as part of plans to create stronger global-sized lenders. The plan is part of the government's efforts to expand to a 5 trillion dollar economy,  pulling up the economic growth that has dropped to a five-year low.

"I want to assure every union in every one 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 one employee removed. Not at all," the minister said during a visit to Chennai.

The government further said the move will reposition PSUs to take the economy to the $5-trillion mark, with wide ranging reforms, financially stronger lenders and stronger governance.

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