The proposal of merger of all the subsidiaries with in State Bank of India suffered a huge setback when the officers and the staff members with the largest lender in the country expressed discontent regarding the merger of the subsidiaries.
Stat Bank Staff Union and SBI Officers Association of Kerala Circle said that such a move might hamper the growth of the India Public Sector Banking System and they even think that it will ultimately lead to the privatization of Indian financial sector.
The Union also said that as a lot of population in the country is yet devoid of banking system and thus it provides all the banks a handsome opportunity to grow.
According to the Union as the bank and the subsidiaries are growing at a good pace and they are earning satisfactory benefits there is no not of merger instead the banks needs to increase their branch count so that they could cater more and more people in the country.
Earlier while announcing the initiation process of the merger the senior official wit the bank accounted for various benefits that are expected through this merger, most importantly that it will cut the un-necessary competition prevailing between the subsidiaries of the same group and also the bank will be able to channelize talent pool available.
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