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India's FinMin assures associate banks employees of protection in merger

Arun Jaitley, India's finance minister, assured lawmakersthat the interest of the employees of the five subsidiary banks of will beprotected following their proposed merger with their parent, the Press Trust ofIndia reported July 22.

In a written letter to India's lower house of Parliament,Jaitley said the pay and allowances of the employees and officers of the bankswill not be less than what they would have gotten from the banks.

State Bank of India is working on its five subsidiaries —State Bank of Bikaner &Jaipur, State Bank ofTravancore, StateBank of Patiala , State Bank of Mysore, State Bank of Hyderabad — and Bharatiya Mahila Bank Ltd.

The proposed merger has been by the government, which islooking to consolidate the country's public sector banks in orderto strengthen the banking system. Employee unions, however, the plan.