Image Source: Economic Times
State Bank of India (SBI) is pushing ahead with its plan to relocate key departments of its Global Market Unit (GMU) from Kolkata to Mumbai, in the face of growing opposition from civil society groups and apprehension about regional economic impacts. SBI rationalizes the relocation as an ongoing, inevitable process to keep pace with evolving business needs and streamline operations for greater efficiency.
Key Highlights:
• SBI is moving its GMU, including international remittances, Centralised Global Back Office (CGBO), forex treasury, derivatives, and structured products divisions, to Mumbai under its corporate office.
• The CGBO, started in 2015, is serving worldwide centers like Sydney, Bahrain, Hong Kong, London, and New York, and has approximately 150 officers and 70 contractual staff.
• Civil society forum Bank Bachao Desh Bachao Manch and former SBI officials filed their objection against the decision, raising concern over the threat of job loss, compromised financial decentralization, and loss of Rs 30-32 crore GST revenues to West Bengal.
• The President, Droupadi Murmu, and Chief Minister, Mamata Banerjee, have been appealed to and written to, seeking their intervention and putting an end to the relocation.
• SBI had already shifted other central offices from Kolkata to Mumbai, including its forex dealing room and rupee desk, showing a future trend towards centralization.
Prospects: In spite of resistance from the region and regional economic stability concerns, the management of SBI under Chairman Challa Sreenivasulu Setty seems inclined to go ahead with the relocation, with the focus being on business consolidation and operational efficiency. The relocation will alter the financial scenario around Kolkata and Mumbai, with constant controversy surrounding centralization versus regional empowerment.
Source: Economic Times, Devdiscourse, Times of India
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