Two representative bank unions have represented to the finance minister that the government reconsider its decision on merging the associate banks with State Bank of India. The two unions are AIBEA and AIBOA. The union cabinet had recently given an in-principle approval for the merger of the five SBI associate banks with SBI. The two unions said they have conveyed their strong protest and concern about the proposed consolidation and merger moves, especially in respect of associate banks. The office bearers of the unions have conveyed to Jaitley that consolidation should not be priority of the government now when banks are facing serious challenges of huge bad loans. The urgent need is to take immediate effective steps to recover these bad loans and strengthen the banks, they said. The unions may go ahead with their proposed agitation against the merger, including a strike on 12 July.
