He said that in case small banks were not viable then why was the government giving licenses to new generation banks with the mere capital of Rs. 500 crores?
He alleged that the government wanted to shrink public sector banking in order to promote private and foreign banking which is detrimental in the interest of the people of the country. S K Gautam, general secretary, AISBPEF said that this move of merger will be strongly resisted by the federation.
Gautam added that the federation demanded for delinking of associate banks from SBI on basis of performance of associate banks being better than SBI.
“SBI management policies are restricting growth of associate banks. By giving licenses to new generation private banks government policies are moving in the direction of US pattern of banking where on an average 30 to 40 private banks are liquidated every year” he said.