Coast losing credit of being cradle of banking industry
Mergers of Corporation Bank, SyndicateBank, incubated in undivided Dakshina Kannada, formalised on Wednesday
With the formal merger of Corporation Bank, one of the oldest banks in the country with Union Bank of India and SyndicateBank with Canara Bank, the distinction of undivided Dakshina Kannada of being the ‘cradle of banking industry’ remains only in the annals of history.
The only solace for people of the coastal region would be that SyndicateBank’s merger was with Canara Bank, another bank incubated in Mangaluru. Besides Corporation, Canara and Syndicate banks, the region had given birth to Vijaya Bank that is now merged with Bank of Baroda.
Karnataka Bank in the private sector continues to remain headquartered in Mangaluru. While Canara Bank’s head office was shifted to Bengaluru way back, Syndicate Bank's corporate office too came to be shifted to Bengaluru afterwards and its registered office has remained in Manipal.
Founded as Canara Banking Corporation (Udipi) Ltd., on March 12, 1906, by a group of visionaries led by philanthropist the late Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, it changed the name to Corporation Bank Ltd., in 1972, and as Corporation Bank in 1980 following bank nationalisation. Its headquarter too was shifted to Mangaluru and had 2,641 branches before the merger.
Syndicate Bank was founded by Late T.M.A. Pai, Upendra Pai and Vaman Kudva as Canara Industrial and Banking Syndicate Ltd., in Udupi. Its name was changed to Syndicate Bank in 1964 and headquarters was shifted to Manipal. It was nationalised in 1969 and had over 4,000 branches before the merger.
Erstwhile Corporation Bank’s General Manager (Public Relations) Rajesh K. Varma told The Hindu the transition should be smooth and the merged entity would have over 9,600 branches across the country. With the merger of Andhra Bank too, the Union Bank of India would command a 35% market share in undivided Andhra Pradesh, he said. IT integration of the merged banks was almost complete while customers would get more services after the merger.
The infrastructure housing Corporation Bank’s head office would be utilised to some of the important departments, including the Circle Office of the Union Bank while maximum number of the existing 650-odd staff would be retained in Mangaluru. So would be the case with staff in branches unless they chose to move elsewhere.
Employees who have an emotional attachment with the erstwhile entities, would feel difficult to adjust to the new environment and works culture, said an officer.
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