Shri Vinod Rai, Chief of Banks Board Bureau and former CAG, has stated that two PSU state banks headquartered at Mumbai are proposed to be merged.
This is not a new proposal as such. The government had earlier proposed the merger of all the state banks with the State Bank of India. The trade unions have opposed these mergers on the count that many branches will be closed and retrenchment will take place.
Now the merger of two PSU state banks are going to be merged as per BBB Chied Vinod Rai. These exercises are nothing but to escape from the ‘bad loans'(NPA) and to reduce the power of the SBI and State banks in order to favour the private banks.