December 3, 2019
Manish Gupta asks a Question on job losses due to bank mergers
FULL TRANSCRIPT
Will the Minister of FINANCE be pleased to state:
(a) whether in respect of banks mergers, the integration of technology platforms is likely to remain the key challenge, if so, the details thereof;
(b) in what manner IT compatibility and seamless integration is being brought about and in what time-frame in view of different merger entities use different software platforms for their core banking solutions, the details thereof; and
(c) the details of the contours and problems associated with bank mergers relating to IT, HR and product offerings?
FIRST SUPPLEMENTARY QUESTION
Sir, in the merger of banks, retirement is involuntary for the employees. The surplus employees have little options. It is expected that at least 50,000 bank employees will be out of jobs by next year-end under VRS packages. Where will they go and how will their families survive? An official study of job losses is as important as job growth in the economy. Has this been done?
SECOND SUPPLEMENTARY QUESTION
They are already jobless. The Government has selected the merger candidates on the basis of technological synergy rather than geographical compatibility. After the announced mergers take place, two large banks headquartered in Kolkata, namely United Bank and Allahabad bank would have to curtail their operations. These banks land heavily to the tea and other sectors in the east, namely in the States of Bengal, Assam, Tripura and Meghalaya. This is likely to adversely affect the economy of the States. What initiatives are being taken to counter this?
Thank you.
