{"id":22569,"date":"2009-07-07T00:00:00","date_gmt":"2009-07-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/need-to-review-the-proposal-to-merge-the-state-bank-of-travancore-with-on-7-july-2009"},"modified":"2017-10-01T23:48:22","modified_gmt":"2017-10-01T18:18:22","slug":"need-to-review-the-proposal-to-merge-the-state-bank-of-travancore-with-on-7-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/need-to-review-the-proposal-to-merge-the-state-bank-of-travancore-with-on-7-july-2009","title":{"rendered":"Need To Review The Proposal To Merge The State Bank Of Travancore With &#8230; on 7 July, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Lok Sabha Debates<\/div>\n<div class=\"doc_title\">Need To Review The Proposal To Merge The State Bank Of Travancore With &#8230; on 7 July, 2009<\/div>\n<\/p>\n<pre><\/pre>\n<p>                                                      &gt; <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=Title\">Title<\/a>: Need to review the proposal to merge the  State Bank of Travancore with State Bank of India.   <\/p>\n<p>\u00a0   <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20M.B.%20RAJESH%20\">SHRI M.B. RAJESH <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=PALAKKAD\">PALAKKAD<\/a>): I would like to raise the issue of merger of associate banks with the SBI.\u00a0 There is a move to merge seven associate banks with SBI.\u00a0 The merger of two associate banks \u2013 State Bank of Sourashtra and State Bank of Indore has already taken place.\u00a0 The employees of these banks have protested strongly and there has been strikes in last September and December and now again the employees are going on strike.\u00a0 State Bank of Travancore (SBT) is an associate bank which is also going to be merged with the SBI.\u00a0 The headquarters of this bank based in Kerala is the only public sector bank in which the Kerala Government have equity ownership and catering to the needs of lakhs of people of Kerala.\u00a0 During 60s when several banks collapsed in Kerala, SBT had taken over six such banks along with lakhs of customers and employees.\u00a0 Farmers, small traders, small industrialists and self-employment seekers are heavily dependent on this bank.\u00a0 The treasury business of Government of Kerala is also being conducted by SBT.\u00a0 Whenever Government of Kerala and public sector enterprises have issued bonds and securities, SBT has invested in them and then only other banks has invested.\u00a0\u00a0 If we consider the education loans distributed in the State, the contribution of SBT is far ahead of other banks while the other public sector banks are reluctant to extend loans.\u00a0 SBT is maintaining the highest deposit ratio and is having a total of 706 branches, Rs. 3290 crore in deposits and has advanced Rs. 27332 crores.\u00a0These facts and figures show that SBT is having a crucial role in the economy of Kerala.\u00a0 If the merger happens, this will be going to adversely affect the economy of the Kerala.\u00a0 Further, various national and international studies have proved that merger of banks will not increase the competitiveness and efficiency of banks as claimed by the Government.\u00a0 The argument that the merger and consolidation will reduce the risk of the financial stability is also not true.\u00a0 The mergers have always been accompanied by the closure of rural branches, retrenchment of employees and outsourcing of banking jobs.\u00a0 Hence, it is found that the mergers are not isolated moves but part of the policies of globalization.\u00a0 In fact, we don\u2019t need the merger but the expansion of banking services in our country.\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hence,\u00a0 I urge upon the Government not to proceed with the bank\u2019s merger.\n<\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   <\/p>\n<p>\u00a0  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lok Sabha Debates Need To Review The Proposal To Merge The State Bank Of Travancore With &#8230; on 7 July, 2009 &gt; Title: Need to review the proposal to merge the State Bank of Travancore with State Bank of India. \u00a0 \u00a0 SHRI M.B. RAJESH (PALAKKAD): I would like to raise the issue of merger [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22569","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Need To Review The Proposal To Merge The State Bank Of Travancore With ... on 7 July, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/need-to-review-the-proposal-to-merge-the-state-bank-of-travancore-with-on-7-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Need To Review The Proposal To Merge The State Bank Of Travancore With ... on 7 July, 2009 - Free Judgements of Supreme Court &amp; 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