Union Finance Secretary Rajiv Kumar had said that, with the reduction of number of public sector banks by merger, employment will see a rise and he also assured that the number of employees would not be reduced.
"When the size of a bank becomes big, then its business will also grow, resulting in more job creation. There is no question of retrenchment. Look at the past example of mergers with State Bank of India. See the example of three banks merging with Bank of Baroda. There was no retrenchment. This is an issue of providing better facilities to bank employees," said Union Finance Secretary Rajiv Kumar Kumar to an interview with ANI.
Kumar also said that there will be only three types of banks in future; Public Sector Bank with strong national and global reach, Public Sector Bank with strong national presence and Public Sector Banks with regional presence. As a consequence of this merger, Public Sector Banks can make investments, cut expenditure and provide more facilities for the customers and he mentioned that this merger will reap more benefits to the people living in tier 2 and tier 3 cities.
Kumar said that the recent merger will be beneficial to the employees working in small banks and they will have more opportunities for transfers. For instance, the merger of Indian Bank and Allahabad Bank will give opportunities to employees to move from South to North and vice versa.