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No job loss due to merger of banks, says Sitharaman

Chennai: Finance Minister Nirmala Sitharaman on Sunday played down fears of job losses following the proposed merger of public sector banks, saying 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 said last Friday. When we spoke about the 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.

She was replying to a question on the bank employees unions opposing the merger plan on the ground it would lead to loss of jobs.

Sitharaman on Friday unveiled a mega plan to merge ten public sector banks into four as part of plans to create fewer and stronger global-sized lenders as the government looked to provide a much-needed push to economic growth from a five-year low.

Sitharaman, who was here to address officers of Customs, Goods and Service Tax and Income Tax department, said there would not be any closure of banks and no bank was being asked to do something new.

"More capital is being given to banks, and they will continue to do more of what they were doing earlier," she said.

On August 23, Sitharaman had announced a slew of measures to boost the economy, including capital infusion of Rs 70,000 crore into public sector banks.

She had also unveiled a mega plan on Friday to merge ten public sector banks into four to create fewer and stronger global-sized lenders

The All India Bank Employees' Union had alleged that Indian Bank might face closure following its merger with Allahabad Bank.

To a question on this, Sitharaman said Indian Bank would be the anchor bank after the merger.

She said 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.

Asked whether there was any slowdown in the economy, she 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.

Suggestions (from them) and what would they want and what they expect from the government of India and I respond to them. I have already done (it) twice, and I will do so many times. Every industry which has approached me I will answer", she said.

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