President's intervention sought over SBI's 'plan' to shift Global Market Unit from Kolkata

Kolkata: A civil society platform mobilising public opinion against the privatisation of public sector banks has expressed concern over the State Bank of India's proposed relocation of its Global Market Unit (GMU) from Kolkata to Mumbai and urged President Droupadi Murmu to intervene in the matter.

The 'Bank Bachao Desh Bachao Manch' claimed that the planned move by SBI would potentially weaken West Bengal's financial ecosystem and lead to significant job losses.

In a letter to the President, the civil society platform expressed concern over SBI's decision to transfer key forex operations, including its Centralised Global Back Office (CGBO), forex treasury, derivatives and structured products divisions.

"The GMU, formerly the Foreign Department of SBI, has been operating from Kolkata since its inception, managing financial transactions across global hubs such as Sydney, Bahrain, Hong Kong, London, and New York," the forum said in a letter to the President.

It has appealed to the President to "prevent the centralisation of financial operations in Mumbai".

The civil society believes that such a move contradicts the principles of financial decentralisation and regional economic stability.

SBI Bengal Circle CGM could not be reached for comments.

The forum claimed that an attempt to shift SBI's forex operation unit was thwarted in 2008 after employee resistance.

Following negotiations, SBI had agreed to retain its forex business segment in Kolkata, it said.

The civil society platform alleged that the move by SBI is part of a broader strategy to undermine Bengal's financial prominence.

The letter, signed by its joint conveners Biswaranjan Ray and Soumya Datta, pointed out that previous measures, such as the forced mergers of United Bank of India and Allahabad Bank, the closure of SBI's Central Accounts Office in Kolkata, and shifting the bank's registered office to Mumbai, have already impacted the state's economy.

The relocation of GMU, it claimed, would further reduce GST contributions to West Bengal.

"GMU Kolkata generates approximately Rs 25 crore in GST revenue annually, of which 9 per cent benefits the state government," the letter mentioned.

Additionally, the bank's International Relationship Centre (IRC) contributes around Rs 40 crore in revenue., it claimed.

"The shifting of GMU would not only affect tax collections but also lead to the retrenchment of nearly 70 contractual employees, including those in housekeeping, maintenance, security, and technical support roles", the civil society platform claimed.