PNB, UBI and OBC form working groups to oversee merger process1 min read . Updated: 11 Sep 2019, 09:36 PM IST
- The three lenders together have formed 23 working groups for overseeing the amalgamation process
- Oriental Bank of Commerce and United Bank will merge into Punjab National Bank to create a bank with ₹17.95 lakh crore business and 11,437 branches
Mumbai: State-run Punjab National Bank, the anchor bank for the merger of United Bank of India and Oriental Bank of Commerce with it, on Wednesday, said the three lenders together have formed 23 working groups for overseeing the amalgamation process.
Last week, the board of PNB has given in-principle approval for amalgamation of Oriental Bank of Commerce (OBC) and the United Bank of India (UBI) with it.
"The amalgamation has to be in terms of technology, products and services, and common services. We all are working on this and have created 23 working groups in all the three banks," PNB's managing director and CEO, Sunil Mehta, told reporters here.
These groups, which will be working on various banking aspects such as product, processes and human resources, will have participants from the three banks, Mehta said on the sidelines of the 72nd annual general meeting of Indian Banks' Association..
He said as of now there are 23 working groups but may increase the number, if needed.
He sees a lot of synergies within the three banks.
"OBC has a good system and processes. They have got overlapping presence with PNB, which can be of advantage and we can optimise on our resources. We do not have a presence in the eastern and north-eastern part of the country, where United Bank has good presence," Mehta said.
He also said the amalgamation will not lead to any retrenchment of employees and there is no plan to come out with a voluntary retirement scheme (VRS).
Oriental Bank of Commerce and United Bank will merge into Punjab National Bank to create a bank with ₹17.95 lakh crore business and 11,437 branches.
Last month, the government had unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as it looks to boost economic growth from an over six-year low.
Other sets of mergers are -- Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.