Bank at the Brink: Kolkata Fights SBI's Strategic Move as Civil Groups Seek Mamata’s Intervention

Key Highlights

 

There has been an outcry in Kolkata after the State Bank of India (SBI) confirmed relocating its Global Market Unit (GMU), Central Global Back Office (CGBO), and three core processing centres from Kolkata to Mumbai. The decision has led to emergency calls from civil society groups—particularly Bank Bachao Desh Bachao Manch (BBDBM)—for Chief Minister Mamata Banerjee to intervene and prevent what they describe as a blow to Bengal's banking industry.

 

Possible Effect on State Revenues and Employment

 

Over 600 families are at risk, with nearly 150 permanent employees and more than 200 casual employees at risk of losing their livelihood if the units are shifted. The disruption also puts at risk the livelihoods of a host of contract workers directly.

 

Civil forums have pegged the transition at a cost to West Bengal up to Rs 25 crore annually in the form of lost GST revenues—a significant dent in the exchequer—as these units are substantial contributors to the state treasury.

 

Breach of Previous Accords and Regional Unrest

 

Critics contend the move violates the tripartite agreement of March 2008 among SBI management, officers, and staff unions that the GMU (then the Foreign Department) had to stay in Kolkata.

 

Historical context is also at work: the GMU was fortified in Kolkata in 2015 to decentralize key banking functions and strengthen the city's position as a national financial centre.

 

Forum leaders claim that not only has management overlooked possibilities to transfer work to Kolkata from other states, but the step also represents a trend of undermining the city's central position in national banking.

 

Demands of Civil Society and Official Reactions

 

BBDBM has already penned a letter to the Chief Minister, requesting her to take up the matter with SBI's top management and the Department of Financial Services for stalling or rolling back the shift. The association demands restoration of 50% of forex business to Kolkata and reinstatement of key accounts sections in line with earlier assurances.

 

SBI replied that the relocation of branches and offices is routine, driven by changing operational requirements—a response that civil society organizations claim is generic and inadequate, not covering either the economic or human cost.

 

The Way Forward

 

As protests are widespread and memories of previous successful opposition to such efforts are fresh, the days ahead will determine if political activism can preserve Kolkata's status as a key banking hub—and save the jobs and revenues involved.

 

Sources: New Kerala, New Indian Express