Union Minister of State for Finance and Corporate Affairs Anurag Singh Thakur has requested public sector banks “to form such HR policies that transfer and other policies do not put employees at unease.”
At an event in Mumbai on Monday to mark the 101st Foundation Day of Union Bank of India, which is going to soon merged with Andhra Bank and Corporation Bank to make it India’s fifth-largest public sector bank with ₹14.59 trillion in business.
The minister said that this merger of both banks, Union Bank with Andhra Bank and Corporation Bank will benefit Union Bank’s strength where it will acquire more customers and assets. He requested the bank to focus more on lending to MSME sector rather than giving loans to big corporates.
He said that the banks have an important role to make the Indian economy into a 5 trillion dollar economy. He added that banks should be able to take the decisions fearlessly in good faith.
Earlier, Union Finance Minister Nirmala Sitharaman had had cleared the rumors and said that no employee would lose their job in this proposed merger of public sector banks.
Union Bank of India has launched many other banking products too for this occasion.
In August, the Government had announced the biggest mergers of public sector banks, which will redue their totals to 12 from 27 in 2017. This was to make the state-owned lenders global sized banks.
United Bank of India and Oriental Bank of Commerce will be amalgamated with Punjab National Bank after which PNB would be the second-largest public sector bank (PSB). As part of the same exercise, Syndicate Bank will be amalgamated with Canara Bank, while Allahabad Bank will be merged with Indian Bank.
Following the same path, Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.