The Shah of Mahindra
Anish Shah, MD of Mahindra group, on his life and times and on enhancing empowerment and diversity in the ...
In a bid to save on operating expenses, Bank of Maharashtra (BoM) has constituted a committee to zero in on branches and zones that need to be merged.
This move comes at a time when the Reserve Bank of India has invoked prompt correct action (PCA) against the Pune-headquartered public sector bank to nurse it back to health from it current weak financial position. The merger of branches and zones also needs to be seen in the context of the bank signing a memorandum of understanding (MoU) with the Finance Ministry to get ₹300-crore capital.
Along with the MoU, the bank has submitted to the ministry a turnaround plan, outlining reduction in the number of administrative offices to curtail operating expenses. This has been highlighted as one of the key strategies for reviving its fortunes. In Mumbai, as per the recommendation of the committee, BoM has decided to merge Bandra (West) branch with Khar branch; senior citizens branch at Cuffe Parade with another branch in the same area; Worli personal banking branch with another branch in the same area; and the self-help group branch in Goregaon (East) with another branch in the same suburb.
Merger of zones will be conducted in a phased manner beginning with the merger of Mumbai Suburban Zone with Mumbai City Zone; Pune West Zone with Pune City Zone; and Raigad Zone with Thane Zone. The aforementioned merger of branches and zones will be effective from September 28. The merger exercise has been done initially for zones from Maharashtra and would be extended to other States later on.
RP Marathe, MD and CEO, told analysts last month that in terms of both the PCA as well as MOU signed with the government, his bank is not planning any increase in branch network, which as at June-end stood at 1,897.
Devidas Tuljapurkar, Joint General Secretary, All Indian Bank Employees Association, said in order to show to all stakeholders that they are taking action, bank managements are resorting to soft options such as branch or zone closure.
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