In the name of consolidation, the government is on the move to merge its subsidiary banks with SBI. There are five associate banks of SBI like State Bank of Patial, State bank of Hyderabad, State Bank of Travancore etc. The proposal is to merge them with the SBI.
Merger of one or two PSU Banks in to one is also in the agenda of the government. This can only be seen to weaken the Banks and reduce its functioning. The licence given to many private payment banks has also to be seen in this context.
The great role played by the Public Sector Bank is well known. These decisions are only to help the private banks grow at the expense of PSU Banks. It s certain that the powerful bank unions will not be a silent spectator on these issues and will start powerful agitations.