Post merger of banks, job cuts are unlikely: Nirmala Sitharaman

CHENNAI: Union Finance Minister Nirmala Sitharaman on Sunday said the merger of 10 public sector banks into four will not result in loss of jobs. Allaying the apprehensions of the bank employees she said not even one employee shall be removed following the amalgamation.

"Absolutely, ill informed. I want to assure every union in every one of these banks to please recall what I have said last Friday. When we spoke about amalgamation of banks I have very clearly underlined the fact that there shall not be one employee removed. Not at all," she told reporters here after a review of Customs, Goods and Service Tax and Income Tax department.

"More capital is being given to banks and they will continue to do more of what they were doing earlier," she said replying to a question on the bank employees unions opposing the merger plan on the ground it would lead to loss of jobs.

On Friday, the FM had unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as the government looked to boost economic growth from a five-year low.

On the All India Bank Employees' Union allegation that Indian Bank may face closure following merger with Allahabad Bank, FM Nirmala said Indian Bank would be the anchor bank after the merger.

"When a bank receives capital, it is for them to function more of what they were expected to do as core business, which was to attract business and lend. Second, another bank in this region is Indian Overseas Bank which continues without any amalgamation added to it. It is also something you should keep in mind," she said.

I will take Manmohan's statement on it: When sought for her reaction to former Prime Minister Manmohan Singh's statement on Sunday morning that the ongoing slowdown in the Indian economy is a result of man-made disasters caused by the Modi government, and that instead of indulging in political vendetta the Centre should consult sane voices, she shot back, "Has he said that? All right, thank you, I will take his statement on it. That is my answer."

"The last quarter's GDP growth rate of 5 per cent signals that we are in the midst of a prolonged slowdown. India has the potential to grow at a much faster rate but all-round mismanagement by the Modi government has resulted in this slow down," Manmohan Singh said in a video released by Congress on Sunday morning.

Government responding to slowdown sectorally: On the slowdown in the economy, the FM said the government was responding to it sectorally, based on their requirement. "Every sector of the Indian economy, when it approaches us, we hear them out for solutions that they want and we respond to it… I have already done (it) twice and I will do so more number of times. Every industry which has approached me I will respond," she said.

To a query on the auto industry seeking a GST rate cut, she said it should be decided by the Council.

Asked what was her message to people who had lost their jobs and those fearing job losses, Sitharaman said, "I can only say we are responding to the industry requirements. Across the board there is no one particular answer that I can give, saying this is the magic wand. Sectorally, what they want, we are responding," she said and added that the contours and tone of issues for each sector varied from one to the other. For instance, the automobile sector has an issue, agriculture has a different issue. "So, each sector has a sectoral requirement which we want to respond", she said.