Mumbai: Assuring employees that the upcoming merger of Indian Bank and Allahabad Bank will create economies of scale, chief executives of the banks have told employees they should not slacken their focus on business growth. A town hall meeting was organized last week in Chennai which was attended by 1,200 employees from both banks.
Padmaja Chunduru, chief executive of Indian Bank, said in a statement that while the common core-banking solution (CBS) platform will make the amalgamation relatively smooth, it is the integration of the human resources that holds the promise of strong growth for the bank.
“The synergies would come from wider presence pan India, economies of scale, higher investments in technology and improving productivity. The customers would benefit from the better customised product and service offerings and digital initiatives that will be rolled out," said Chunduru.
She said integration of human resources will be the main focus in the amalgamation process and employees need to continue their focus on business growth and customer service during the transition period.
Mallikarjuna Rao, chief executive of Allahabad Bank, said the customisation that had gone into the CBS platforms of both banks will require deeper attention in the process of unification of products and services.
“There will be capacity for better adaptability to faster technological changes, achieve economies of scale," he said.
On 30 August, finance minister Nirmala Sitharaman announced the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank with business worth ₹7.95 lakh crore to make India’s second-largest bank.
The other merger will be between Canara Bank and Syndicate Bank, which will create the country's fourth-largest bank, with ₹15.2 lakh crore in business. Also, Union Bank of India will be merged with Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 lakh crore in business. Indian Bank will be merged with Allahabad Bank to make India’s seventh-largest PSB with a business of ₹8.08 lakh crore.