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A majority of the employee shareholders, who spoke at the extra-ordinary general meeting of ING Vysya Bank on Wednesday, expressed resentment over the lender’s proposed merger with Kotak Mahindra Bank.
Employees, who want their jobs and wages to be protected, have been protesting against the merger since the ₹15,000-crore deal was announced in November.
They have been insisting that Kotak Mahindra, along with ING Vysya, enter into a tripartite agreement with them, providing assurances on job safety for all employees. “The employees’ future is bleak,” said Ramakrishna Reddy, General Secretary of the All India ING Vysya Bank Employees’ Union.
“We will explore every possible option to fight this merger,” Reddy told reporters on the sidelines of EGM here.
‘Lacks transparency’ Alleging lack of transparency in the way the merger was being rushed through, Reddy was critical of ING Vysya not allowing the media to cover the EGM.
The ING Vysya Bank Employees Union and the All India ING Vysya Bank Officers’ Association, which represent 35-40 per cent of the bank’s 10,500-odd staff, claimed that their concerns over the proposed merger remain unresolved.
“Why are they shying away from signing a tri-partite agreement with us? Are they going to back-stab us after the merger?” asked SA Shridhar, General Secretary of the Officers' Union.
He said if Kotak does not sign an agreement, the staff stir would be intensified and they may go on an indefinite strike. The results of the shareholder ballot on the proposed merger will be announced within 48 hours, bank officials said.
About 750 shareholders, representing about 16.93 crore shares of ING Vysya, participated in the EGM. About 30 shareholders spoke at the meeting. Some employees also spoke in favour of merger.
A minor shareholder, seeking anonymity, supported the merger, but was not happy with the swap ratio. He said the deal was in line with the general trend of consolidation across the banking sector.
ING Vysya Bank shares ended 2.13 per cent higher at ₹878 on the BSE on Wednesday, while Kotak Mahindra shares closed 1.78 per cent higher at ₹1274.
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