34 functional teams will steer the merger of 3 PSU banks
New Delhi: To execute the merger of PSU banks — United Bank of India (UBI), Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC) — a total of 34 functional teams have been formed, a senior official said. "Thirty-four functional teams have been created to come out with solutions for the process of integration," a UBI official said on Wednesday.
The merger of PSU banks is scheduled to take effect from April 1 next year.
How will teams aid merger of these PSU banks?
Each team comprises of two members drawn from two of the three banks from different functional areas. "The functional teams will also try standardising the loan process, credit terms and benefits extended to the customers in the interim period till the merger comes into effect to avoid customer-related issues in the future," the official said.
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The UBI has also organised customer meets at Kolkata, Guwahati and Patna to allay their apprehensions about the future of banking, the official said.
The timeline
UBI Managing Director and CEO AK Pradhan had said that the balance sheet merger is likely to take place by April 1 next year. He, however, added that it will take another three to six months after that for the HR and IT integration to be completed.
Pradhan said that a complete harmonisation among the three entities would be completed in another 12 to 14 months after the merger takes effect.
The backdrop
The merged entity will be India's second-largest lender after the State Bank of India (SBI) with a total business volume of Rs 18 lakh crores. The Centre announced the decision to consolidate 10 public sector banks into four in August as part of its attempts to revive a slowing economy. Allahabad Bank is set to be merged with Indian Bank while the Union Bank of India, Andhra Bank and Corporation Bank will be amalgamated. Canara Bank and Syndicate Bank will also be merged.
