UFBU urges Centre to takeover LKB by public sector bank

Thiruvananthapuram, Sep 2 (UNI) The state unit of United Forum of Bank Unions (UFBU) today urged the Centre to initiate steps for the takeover of Lord Krishna Bank (LKB) by a public sector bank to ward off the proposed merger of the 66-year-old bank with the new generation Centurian Bank of Punjab.

The merger with a public sector bank, however, should be done keeping in view the interests of bank deposits and the state's development concerns, the UFBC said, calling for a high-level probe into the state of affairs in the bank that necessitated a merger.

Addressing the press, the UFBU leaders here alleged that serious omissions, lapses and dereliction of regulation and supervisory functions on the part of the Reserve Bank of India had brought about the situation in the LKB.

The Bank union leaders said the UFBA would also extend full support to LKB unions in their ongoing struggle against the proposed merger of the bank with the Centrian Bank of Punjab.

The LKB unions, under the banner of the UFBU, would organise a hunger strike on September 4 in front of the bank's administrative offices and a day's token strike on September 12. The leaders also warned of launching an indefinite strike if the bank signed agreement towards the merger.

The UFBU would also meet state Chief Minister V S Achuthanandan, Finance Minister and all MPs in Kearla to urge for their intervention, they said.

The bank, which began operations in 1940, have 111 branches, including 68 in the state. The capital base of the bank is Rs 95 crore and it has a total business of Rs 3,600 crore and staff strength of 1,200.

UNI CGV ANR VJ RS1426