The State Bank of India (SBI) has not denied the possibility of shifting a part of its Global Market Unit (GMU) from Kolkata to Mumbai. This came in response to a query by a civil society forum, Bank Bachao Desh Bachao Manch (BBDBM), to the President of India. The forum had written to the President expressing concerns that SBI plans to relocate its Centralised Global Back Office (CGBO), along with its forex treasury, derivatives, and structured products divisions, from Kolkata to Mumbai. The CGBO operates across global financial hubs, including Sydney, Bahrain, Hong Kong, London, and New York.
SBI responded by stating that the opening, shifting, and rationalization of branch offices is a continuous process undertaken in the normal course of business. However, the bank’s response did not provide any specific justification for the potential relocation of the GMU from Kolkata. The BBDBM expressed disappointment at the generic response from SBI, stating that it did not address the core issues raised in their original complaint.
The GMU, formerly known as the Foreign Department, Kolkata, has been operating successfully in the city since its inception in 2015. The forum pointed out that this is not the first attempt to strip Kolkata of its pivotal role in SBI’s forex operations, citing a similar move that was thwarted two decades ago through collective resistance from employees and officers.
The potential relocation of the GMU from Kolkata to Mumbai has sparked concerns that it would be a significant loss for the city. BBDBM spokesperson Ashok Mukherjee stated that any such move should be stopped, highlighting the importance of the GMU to the city’s economy. The forum’s concerns have sparked a debate about the potential impact of the relocation on the city and the bank’s operations. The SBI’s decision to consider relocating the GMU has raised questions about the bank’s commitment to maintaining a significant presence in Kolkata, a city that has historically played a crucial role in the bank’s forex operations.