No difference of opinion on bank merger issue: Vinod Rai

Bangalore, Oct 13 (UNI) Union Finance Ministry Special Secretary (Financial Sector) Vinod Rai today said there is no difference of opinion between the managements and the trade unions on merger of weaker banks with major banks in the country.

In a chat with newspersons here, he said trade unions were not against the merger. It was necessary for the managements and trade unions to work together, considering the benefits of merger.

''It is for the managements and the trade unions to work together and come up with a proposal. Not that the merger move is being opposed by them (trade unions), they have to be convinced about the benefits that will emerge,'' he added.

Asked whether the merger would be done in one go or in a phased manner, Mr Rai said ''they (trade unions and managements) have to work it out. Somebody has to make a beginning. The recent merger of United Western Bank with Industrial Development Bank of India is doing well.'' Canara Bank Chairman and Managing Director M B N Rao, who was also present, denied reports of multinational banks grabbing rich customers from public sector banks. ''In Karnataka, Canara Bank tops in the banking sector and there are customers doing transaction with us since last 40 years. No customer has left us after the advent of foreign banks,'' he added.

He dismissed as rumours, reports that foreign banks might close down suddenly, putting customers to hardship.

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