The United Forum of Mahabank Unions has objected to the proposale of the entire shareholding of Maharashtra Executor & Trustees Company Pvt Ltd (METCO), which is a wholly-owned subsdiary of Bank of Maharashtra.
Union Voices Concern Over METCO’s Legacy
In a letter addressed to the managing director of Bank of Maharashtra, Dhananjay Kulkarni (All India Bank of Maharashtra Employees' Federation), Santosh Ghadge (Bank of Maharashtra Officers' Organisation) and others noted that METCO has a legacy of over seven decades of service and continues to operate profitably, though perhaps not at the desired level.
“In this context, we believe that the decision to divest the Bank’s entire stake in such a trusted subsidiary is ill-advised and contrary to the broader institutional and customer interests.”
Risk to Trust and Reputation
“This move risks eroding the trust that METCO’s clients and indeed the Bank’s customers at large have placed in the institution over the years. Such a decision, taken without adequate consultation or transparency, particularly with the customers and stakeholders concerned, may also adversely affect the public image and reputation of the Bank.”
Concerns Over Lack of Consultation
“We further wish to place on record our concern that significant strategic decisions, such as the proposed sale of METCO and the shifting of the Bank’s Head Office are being taken in the absence of independent directors and without representation of the employees’ and officers’ associations, as provided for under the governing framework.”
Call for Withdrawal of Sale Notification
“In light of the above, we request the immediate withdrawal of the notification regarding the sale of METCO. We firmly believe that, with appropriate support and strategic focus, METCO’s business and profitability can be enhanced substantially," the activists added.
