Senior Congress leader Jairam Ramesh said six banks have lost their identity today due to bank mergers which are based on the "faulty" assumption of "bigger the better".
He said he was opposed to merger of banks and had opposed it in Parliament too when the government proposed it.
"These bank mergers are based on a faulty assumption that bigger the better. This has never worked. There are other issues related to work culture, traditions, human resources that are forgotten in this misguide craze for bigger balance sheets," Ramesh told PTI.
He also referred to two South Indian banks as pioneers of the industry.
"Today two pioneers in Indian banking - Andhra Bank and Syndicate Bank - lose their distinctive identity. Andhra was started by stalwart Congressman B. Pattabhi Sitaramayya and Syndicate by the great TMA Pai. I am not a supporter of bank mergers at all and opposed it in Parliament," he tweeted.
The government on Wednesday brought into effect merger of six banks with other banks.
While Oriental Bank of Commerce and United Bank of India have merged into Punjab National Bank; Syndicate Bank has merged with Canara Bank; Allahabad Bank has been merged with Indian Bank and Andhra Bank and Corporation Bank have been merged in Union Bank of India.
