LKB operations at a standstill as employees protest takeover
Kochi-based Lord Krishna Bank’s (LKB) crucial AGM to decide on its merger with Centurion Bank of Punjab (CBoP) will be held here on September 30.
The bank’s Kerala operations have been paralysed for the last three weeks, following an indefinite strike being observed by LKB’s employees, opposing the bank’s merger with CBoP. Trade unions are planning to organise a `People’s rally’ on September 30, the day of the AGM.
On October 3, the entire banking operations in the state are likely to come to a halt as the United Forum of Bank Union, an association of all employees of banks in the state, has called for a one-day token strike to support LKB employees. Speaking to ET, LKB managing director and CEO B Swaminathan said that he had held discussions with unions to solve the crisis and had made several appeals to the employees to return to work. The notice to the AGM clearly says that their status, emoluments and service will be protected, Mr Swaminathan explained.
“But their demand for a merger with a PSU bank is something which needs policy decision,” he said. In the process, the bank is losing its goodwill among its consumers due to the closure of all its 69 branches in the state and five branches bordering Tamil Nadu, he pointed out. All the other branches outside the state, which account for 70 % of the business, are working normally, he said.
Meanwhile, the employees have cut RTGS lines at the head office though it was restored quickly. A skeleton staff comprising senior management staff are working at the head office to meet the emergency needs of consumers. “We have made arrangements with other banks for emergency payments,” Mr Swaminathan added.
Despite holding keys to the branch and lockers, the employees have not reported for work, he said. Many customers are contacting the bank’s head office to use their bank lockers, but the management staff members have not been able to help them.
Unions are banking on the support of political parties in the state. “We will involve leading politicians and trade union leaders of all parties during the rally on September 30 to be held outside the venue of the AGM,” said VJ Johnny, general secretary of All Kerala Bank Employees Federation and convenor of the United Forum of Bank Unions.
Apart from stopping the merger with CBoP and a merger with a PSU bank, we want an enquiry into the circumstances in which LKB became a weak bank, he said. LKB has to fulfil the twin task of raising its net worth from Rs 163 crore to Rs 300 crore and reducing the Delhi–based Puri Group’s stake from 65 % to 10 %. Therefore, the smooth conduct of the AGM is the need of the hour for the management. Meanwhile, for customers, the baseline of the bank — “banking as you like it” — is losing its sheen.
