"This attack on our regional autonomous institution is part of a political motive, it is doing away with the federal spirit of the country and building up a monolithic nation by submerging all ethnic identities," he told the 28th national conference of All India Bank Employees Association.
He said there was opposition to the move in Kerala from several quarters and referred to the matter going to court besides his letter to Prime Minister Narendra Modi. He also recalled a resolution of the state Assembly against the proposal mooted last year.
Vijayan, heading the LDF government, said the merger would lead to closure of more than half of SBT branches and transfer of employees. "One cannot turn a blind eye to the potential loss of career opportunities," he said.
Noting that the Kerala government conducted its major business through SBT, he said, "What is worrying is the possible disappearance of a banking dispensation which accorded priority for the causes of the state and its people."
Vijayan said, "It is imperative that they (like SBT) remain regional and autonomous. The aspirations of all sections of our society will materialise only in such an atmosphere. It is marked by the spirit of justice and equality."
State Bank of India Chairperson Arundhati Bhattacharya had recently indicated that the merger of its five associate banks, including SBT and Bharatiya Mahila Bank, is likely to happen in the next financial year (2017-18).