InvestorQ : Is it true that banks are going on strike towards the end of March over the merger? How will it impact banking as it is annual closing?
Dawn Cherian made post

Is it true that banks are going on strike towards the end of March over the merger? How will it impact banking as it is annual closing?

Answer
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Dilmini Mercia answered.
6 months ago


That is unfortunately correct. In fact, soon after bank unions called off a three-day bank strike from March 11, two unions have now called for another bank strike on March 27 to oppose the mega merger of PSU banks. FM had announced the merger of 10 PSU banks into 4 banks under the merger scheme which is to take effect from April 01. Their demands include stopping the proposed merger of 10 PSU banks, stopping the privatisation of IDBI Bank and rollback out banking reforms and recovery of bad loans. The associations pointed out that many of their NPAs were due to political pressure. For fiscal 2019, PSU banks reported gross profit of Rs.150,000 crore and bad loan provisions of Rs.216,000 crore resulting in a net loss of Rs.66,000 crore. The MF has justified the proposed merger on the grounds that it would enhance customer convenience, offer better branch service, ensure higher credit flow and better cost management due to centralization of support services.