A civil society group advocating against the privatization of public sector banks has raised concerns over the State Bank of India’s (SBI) proposed relocation of its Global Market Unit (GMU) from Kolkata to Mumbai. The group, ‘Bank Bachao Desh Bachao Manch,’ has urged President Droupadi Murmu to intervene, arguing that the move could weaken West Bengal’s financial ecosystem and result in job losses.
Concerns Over SBI’s Decision
In a letter addressed to the President, the civil society platform expressed alarm over SBI’s decision to transfer key foreign exchange (forex) operations, including:
- Centralised Global Back Office (CGBO)
- Forex Treasury
- Derivatives Division
- Structured Products Division
The group emphasized that the GMU has historically operated from Kolkata since its inception, managing financial transactions across major global financial hubs such as Sydney, Bahrain, Hong Kong, London, and New York.
Call to Prevent Centralisation in Mumbai
The civil society platform has called for stopping the centralization of financial operations in Mumbai, arguing that this move contradicts financial decentralization principles and could harm regional economic stability.
An attempt to shift SBI’s forex operations was reportedly thwarted in 2008 after employee resistance. Following negotiations, SBI had agreed to retain its forex business in Kolkata, but the current move indicates a shift in strategy.
Impact on West Bengal’s Economy
The group alleges that SBI’s decision is part of a broader plan to undermine Bengal’s financial prominence. The letter signed by Biswaranjan Ray and Soumya Datta, joint conveners of the platform, points out previous setbacks to Bengal’s banking sector, such as:
- Forced mergers of United Bank of India and Allahabad Bank
- Closure of SBI’s Central Accounts Office in Kolkata
- Shifting of SBI’s registered office to Mumbai
Additionally, the relocation of GMU is expected to reduce West Bengal’s GST revenue, as GMU Kolkata generates approximately ₹25 crore annually in GST contributions, 9% of which benefits the state government.
The bank’s International Relationship Centre (IRC) contributes around ₹40 crore in revenue, which could also be impacted.
Job Losses and Economic Concerns
The civil society group claims that relocating the GMU would affect employment opportunities, leading to the retrenchment of nearly 70 contractual employees working in:
- Housekeeping
- Maintenance
- Security
- Technical support
The SBI Bengal Circle Chief General Manager (CGM) could not be reached for comment.
Conclusion
With mounting concerns over the economic and employment impact of SBI’s decision, the civil society platform is urging the President to intervene and halt the shift of operations. The issue is expected to spark further debate over financial decentralization and the role of banking institutions in regional economic stability.
