The CPI has sought Union Finance Minister Pranab Mukherjee's intervention to prevent public sector State Bank of India from going ahead with its merger plans, saying such a move will be "counter-productive" and lead to "shrinkage" of banking services in the country.
In a letter, CPI National Secretary D Raja appealed to the minister to prevail upon the SBI management to withdraw from merging its associate banks with the premier bank.
"... When total financial inclusion is the avowed policy of the government, closure, merger and consolidation of banks will lead to shrinkage of banking services," Raja observed in his letter.
"But, what is needed today is bank expansion and not consolidation. Hence, closure and merger of banks will be counter-productive in our present economic context."
Raja claimed that SBI is planning to close down all the associate banks — State Bank of Indore, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur and merge these banks with State Bank of India.