Money & Banking

Banks consolidation: Chief executives to share plans, state of preparedness

Our Bureau New Delhi | Updated on March 11, 2020

Finance Minister to review progress of mergers today

Public sector banks that are participating in the latest round of amalgamation will make a presentation to the Finance Minister Nirmala Sitharaman on Thursday, on their plans and preparedness.

The Government had last year announced a bank consolidation plan that involved amalgamation of as many as 10 PSBs into four banks.

With April 1 set as the date for implementation, the Finance Minister will assess the steps being taken to ensure there is no disruption to customers or flow of credit before, on the day of the amalgamation and thereafter.

Address customer queries

Also, chief executives of the amalgamating banks are expected to explain the preparedness to handle and address customer queries and difficulties, through a common call centre with regional language support, to ensure that customer issues are addressed on the same day.

The presentation will cover business and financial plans, including credit and deposit growth and year-wise synergy realisation in line with those shared earlier with Department of Financial Services (DFS).

Enhancing delivery

Chief executives of the amalgamating banks are likely to discuss plans for ensuring enhanced delivery of banking services and products to customers, with likely timeframes.

Sitharaman is also expected to review the communication strategy with clear messages for customers, media (including social and local media), investors and analysts, and employees.

The presentations are likely to cover launch events, locations, messages, coverage and info packs for large customers and investors.

The bank consolidation move was announced in August last year to create a stronger public sector bank framework to support a $5-trillion economy by 2023. The number of public sector banks will come down from 27 in 2017 to 12.

Under the latest round of merger, Oriental Bank of Commerce and United Bank of India are to be amalgamated into Punjab National Bank (PNB).

Syndicate Bank is proposed to be amalgamated into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India, and Allahabad Bank into Indian Bank

Published on March 11, 2020

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