Merger of Banks is a murder of Banks: In a big bang announcement, finance minister has informed the nation that 10 public sector banks (PNB, Canara Bank, Union Bank of India, Indian Bank, United Bank of India, Allahabad Bank, Syndicate Bank, Corporation Bank, Oriental Bank of Commerce and Andhra Bank) will be merged into four banks.

The meaning is that six banks will now get closed. Government may call it a merger but in reality it is cold-blooded murder of these six banks, because after merger these six banks which have been built up over the years, will disappear from the banking scenario.

Banks were nationalised in 1969 with a very clear social and economic objective of broad-basing the economy and its development. In the last 50 years, the nationalised banks have made a phenomenal contribution in building up a strong economy with a visible social orientation.

Just 8,000 branches have become 90,000 bank branches today, out of which 40,000 branches in located in rural and semi-urban areas which were earlier neglected.

Credit to priority sector has boosted our economy resulting in achievements like green revolution and white revolution, industrial progress, job generation, rural development, etc. In 2008 when the entire globe was facing financial turmoil and banking tsunami, Indian banking system was safe because of our public sector banks.