Gujarat Regional Rural Bank Union Accuses Saurashtra Gramin Bank Chairman of Hindering Amalgamation Process

The Gujarat Regional Rural Bank Employees’ Union (GRGBEU) has raised serious concerns regarding the alleged actions of the bank’s Chairman, claiming obstruction of the smooth execution of the Regional Rural Bank (RRB) amalgamation process, as outlined by the Department of Financial Services (DFS).

In a detailed letter dated December 13 to the Gujarat government, the AIRRBEA affiliated union highlighted several instances where the Chairman’s decisions and actions have caused delays, inefficiencies, and disruptions in the implementation of the amalgamation directive. The union has requested immediate intervention to ensure compliance with the DFS framework and uninterrupted progress of the initiative.

Image: Letter of the GRRBEU to the Gujarat Govt alleging Saurashtra Gramin Bank’s Chairman hindering amalgamation

Challenges Cited by the Union

The letter outlined specific grievances regarding the Chairman’s management approach, which, according to the union, is impeding progress in several critical areas:

1. Policy Non-Compliance: The union claimed that the SGB Chairman disregarded official DFS directives related to key procedural steps, slowing the implementation timeline and asked the SGB unions to oppose the central government driven process of amalgamation.
2. Pushing Cross-selling: As claimed by the union, the SGB chairman started giving huge targets of insurance and mutual funds to all branches of SGB for cross-selling business with a view to achieve this target by the end of December 2024 for his personal gain i.e. commission income and nothing else. 
3. Dipping Trust: Due to continuous focus on commission income earning and personal gain centric approach of this Chairman, Saurashtra Gramin Bank (Gujarat) is continuously losing trust of the people of 11 district of Saurashtra Region and there could be seen very negligible growth around 1.02% of deposit in this bank during current financial year in comparison to approximately 8% growth in pan India banking industry in current financial year. 

SGB Chairman Pushing SBI as Sponsor Bank

The union has further alleged that the Chairman has been attempting to alter the proposed sponsor bank for Saurashtra Gramin Bank from Bank of Baroda to State Bank of India, contrary to the central government’s decision outlined in the GOI directive. According to the union’s letter, this move is part of a concealed agenda, purportedly supported by SBI’s Corporate Centre, aimed at retaining control over the lucrative cross-selling business of insurance and mutual funds in Gujarat.

The DFS notification dated November 4, 2024, proposed Bank of Baroda as the sponsor bank for the RRB to be formed following the amalgamation process.

A Call for Swift Government Action

The union’s letter concludes with a strong appeal to the Government of Gujarat to intervene, ensure strict compliance with the DFS mandate, and take steps to hold the Chairman accountable for his actions. The union stressed the importance of removing hurdles in this transitional phase to safeguard the interests of employees, customers, and the broader banking ecosystem in the region.

By highlighting these challenges, the Gujarat Regional Gramin Bank Employees’ Union has brought attention to what it describes as critical internal roadblocks that could compromise the long-term vision of streamlined rural banking services under the proposed framework of amalgamation.