Kochi: Kerala High Court on Tuesday issued notices to the centre on a plea filed by the ‘Save SBT Forum’ against the proposed merger of SBT with SBI. Mr Pannian Ravindran, chairman of the forum, moved the court arguing that the proposed acquisition was without having any research on the merits and demerits of the acquisition based on financial and feasibility factors.
If the authorities refuse to retract from the proposed acquisition, it will cause irreparable damage and loss to the stakeholders of SBT, especially minority shareholders, customers and the employees, the petition argued. The acquisition of SBT by SBI will lead to elimination of opportunities for employment and closure of large number of branches and ATMs in the state and other parts of the country.
This will adversely affect the existing banking services and is against public interest, the petitioner argued. The state government has moved and passed a ‘motion’ in the Assembly against the acquisition asking the central government and the Reserve Bank of India to withdraw the decision of acquisition/merger since it is against the interests of the state as a whole. The major portion of financial transactions of the government is being carried out by SBT.
