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 Rs 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.