Kerala Assembly passes motion opposing merger of SBT with SBI

Thiruvananthapuram: The Assembly on Monday passed a motion calling upon the Centre and the Reserve Bank of India to withdraw from the move for merger of Stat Bank of Travancore (SBT) with State Bank of India (SBI).

All members of the House except BJP member O. Rajagopal supported the resolution.

The substantive motion, adopted at the end of a discussion raised through a motion moved by Chief Minister Pinarai Vijayan, said that the merge would harm the economic growth of the State.  

It noted that the SBT had contributed critically to agriculture development of the State.  Much of the financial transactions of the State government were currently being transacted through SBT which was the largest public sector Bank in the State.

Earlier, winding up the discussion, the Chief Minister said that while other banks raised considerable amounts as deposits from the State, they lent the money outside the State. State Bank was largely lending within the State.

He said that the SBI faced no challenge to act globally even if the merger did not take place.

Finance Minister Thomas Isaac said that the matter was being taken up by the House not because it wanted to move against Prime Minister Narendra Modi but because the merger would affect the economic growth of the State. Once the merger takes place, the bank’s lending would be decided by international considerations.

He remarked that Mr. Rajagopal should have stood with rest of the House because the merger is not in the interests of the State even if it benefits SBI. The ASEAN trade agreement was beneficial to the country, but not to the State.  So, Kerala opposed it. Similar was the situation now.

Mr. Mullakkara Ratnakaran (CPI) said that the SBI would not show the same kind of responsibility that SBT showed towards Kerala.

Mr. O. Rajagopal said that the motion was being raised not because of any financial concerns but because of trade union interests. The demand was part of anti-Modi sentiment being stirred up by CPI-M which was also being lapped up by the Congress.

He said that the merger was required for the SBI to stay internationally competent in an era of globalisation.

K. S. Sabarinadhan (Congress) said that the SBT worked in tune with Kerala’s business needs. It had provided more loans to small business, women and poorer sections of the society than SBI. This situation would change once the merger took place.

He also noted that 14000 employees and 1000 workers on daily wages of SBT would be affected by the merger.