Bengaluru: AIBOC opposes Vijaya Bank merger - says it does not address NPA


Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jan 18: All India Bank Officers Confederation (AIBOC) has accused the union government of violating rules governing acquisition and transfer of government undertakings in merging Dena Bank and Vijaya Bank with Bank of Baroda. AIBOC state secretary, S K Srinivas, made this allegation at a press conference he addressed here on Thursday January 17.

Srinivas asserted that the announcement of merger of these banks made by union finance minister, Arun Jaitley, after obtaining cabinet nod for the same on September 17, 2018, was unilateral, and that it is against the interests of the shareholders of the banks. He felt that this decision was backed by prejudice, and has the potential of harming the turnover and financial stability of the banks besides adversely affecting the interests of bank employees.

He questioned whether there is a guarantee that the banks will continue to protest interests of the customers after the merger. "Vijaya Bank has been serving its customers in a far better way than the bigger banks. While bigger banks have been incurring losses, Vijaya Bank has earned net profit continuously since the last three years. Will all the problems affecting banking get resolved post merger? There are many instances including State Bank India where mergers have failed," he argued.

He also pointed out that because of hard work put in by its employees, Vijaya Bank has succeeded in pegging its non-performing assets (NPA) to 6.7 percent of its gross credit as compared to 12.5 percent in case of Bank of Baroda and 22.7 percent in case of Dena Bank. He felt that before the merger, Bank of Baroda should have been asked to bring down its NPA level to that of Vijaya Bank.

Srinivas demanded for the initiation of legal action against bank defaulters and make public the list of bank defaulters. He warned that unless the banks carefully take measures to clean up their credit portfolio, a day will come when the banks will lose their business to private finance companies.

  

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Comment on this article

  • Sumanth, Skal

    Fri, Jan 18 2019

    May be he got some good bribe and commission from gujju bhavu

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Jan 18 2019

    Dodn't expect Feku, Daku & Chaku to know what is NPA - Loz ...

    DisAgree [1] Agree [10] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Jan 18 2019

    vijaya bank & dena bank r profit making banks. gujju's baroda bank is in loss. chaiwala wanted profit making banks 2 align with gujju bank baroda bank.

    DisAgree [3] Agree [17] Reply Report Abuse

  • mohammed, Mangalore

    Fri, Jan 18 2019

    You dont know the difference between a public sector and a private bank?

    DisAgree [3] Agree Reply Report Abuse

  • Clifford, Mangalore

    Fri, Jan 18 2019

    Dena Bank is one of worst bank in the history of India.

    The only benefits to BOB by merging Dena Bank is network in northern India. Dena Bank has more branches in north India. Similarly Vijaya Bank has more branches in South India.

    BOB is one of the strongest bank in India. Their sofware is much advanced than Vijaya Bank and Dena Bank. The only accumulation of NPA in BOB becuase RBI instructed all the banks to book NPA against the Companies which refered to the NCLT.

    Merging banks will reduce the corrupt practices of all banks.

    DisAgree [1] Agree [5] Reply Report Abuse

  • Bhutai, Kudla

    Fri, Jan 18 2019

    And how will Merger reduce the corrupt practice of banks?

    Dont't just post non sense. Go by facts.

    DisAgree [1] Agree Reply Report Abuse

  • Clifford, Mangalore

    Sat, Jan 19 2019

    Just check how much commissions bank paid to the brokers to approve loans in the banks.....
    Particularly in the nationalized banks.
    Fruads are happening in nationalized banks only...

    DisAgree Agree Report Abuse


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Title: Bengaluru: AIBOC opposes Vijaya Bank merger - says it does not address NPA



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