The Hindu Business Line : Not against consolidation

This refers to “Employees of SBI associates say no to consolidation” (Business Line, June 13). It is not correct to say that the employees are against the merger; it is the union leadership that protests.

The employees stand to gain much from being part of the bigger institution with more perks and benefits including pension as a third retirement advantage.

The AIBEA stands to lose its monopoly union status because the Associate employees would join the SBI Union on merger.

The ABOA of the officers would merely vaporise. Bank unions are a multi-crore business in India with their co-operatives and housing societies apart from huge levies. Banking is the only sector where the Left still holds sway.

However, the last three strikes by them saw the majority of employees availing of leave rather than striking on loss of pay.

The proposed agitation in July is merely the unions’ trying for self-preservation at the cost of the membership. The unions ought to be more selfless on the issue and consider their members’ better interests.

R. Sajan Ernakulam

Cautious consolidation

The editorial “Consolidating banks” (Business Line, June 13) contains certain inconsistencies. It says many banks in the US were recapitalised with tax-payer’s money and concludes “Simply put, US banks will emerge bigger and stronger “. They were no doubt big, but so was their failure.

Banking statistics reveal that all public sector banks are performing better than their private sector rivals. This is the time for cautious consolidation in the banking sector. Reforms in this area should take into consideration the events of the past six months. In this context, the comments of Mr K. V. Kamath are worth heeding: “We already have a well run banking system and a well run financial system. It has adequate levels of capital. I think at this point of time we should keep it undisturbed ....we shall not tinker with it.”

P. Suresh Mumbai