In what could prove to be a setback this holiday season, bank employees have decided to go on a nationwide strike on 26 December. According to Financial Express, bank employees will go on strike due to the merger of Vijaya Bank, Dena Bank and Bank of Baroda. According to the All India Bank Employees Association (AIBEA), the strike will go on as planned, as according to them, the merger between the banks will result in unemployment and will have its effect on the economy. C H Venkatachalam, the general secretary of the All India Bank Employees Association (AIBEA) said that around 10 lakh bank employees in the country will participate in the strike against the merger that was approved by the Reserve Bank of India.
C H Venkatachalam added by saying that the recent merger of state banks that now form State Bank of India shouldn’t be an example that a merger could improve the financial situation as the NPAs (Non-performing assets) of SBI have increased to Rs.2.25 lakh crore since the merger.
The Central Bank of India looks at the merger of Vijaya Bank, Dena Bank and Bank of Baroda as a positive move as all banks have been suffering by bad loans and NPAs. According to a source, the NPA ratio of Dena Bank is at 11.04%, while for Bank of Baroda is at 5.4% and for Vijaya Bank, the NPA ratio stands at 4.10%.
Source: Financial Express