NEW DELHI: Heads of all public sector banks (PSB) that are cleared for merger will meet on Wednesday in Mumbai to discuss the best practices banks follow ahead of a merger.
“The purpose of the meeting is to brainstorm and share suggestions. The meeting will be attended by heads of all 10 PSBs whose names have been cleared for merger, along with officials from the Department of Financial Services,” a senior official from Depart of Financial Services told this publication.
The meeting will also be attended by the top management officials of the State Bank of India and Bank of Baroda, who will share their insights about the merger process.
Finance Minister Nirmala Sitharaman last week announced the merger of Oriental Bank of Commerce and United Bank with Punjab National Bank; Syndicate Bank with Canara Bank; Andhra Bank and Corporation Bank with Union Bank of India, and Allahabad Bank with the Indian Bank.
Overall, the number of PSBs will reduce from 18 to 11. Other PSBs — UCO Bank, Bank of Maharashtra, Indian Overseas bank, Punjab and Sind Bank, Central Bank of India and Bank of India — will continue to operate as independent regional entities.
“The primary topic of discussion will be HR management, so that there is least disruption for customers. Share swap, timeline and NPA management are also key concerns for the banks ahead of the merger,” the official said.
The ICICI Bank, in a report released on Tuesday, said that anchor bank in the cases of Indian Bank-Allahabad Bank and Canara Bank-Syndicate Bank mergers are expected to witness 15-20 per cent impact on Adjusted Book Value even after capital infusion.
Meanwhile, officers’ associations of various banks, who oppose the merger, will meet in New Delhi on September 5 to chalk out their future course of action, said an official.