BUSINESS

Merger won’t lead to closure of even one branch: Indian Bank

Since both banks are on the same technology platform,we don’t foresee any problem, says the MD.Bijoy Ghosh

Since both banks are on the same technology platform,we don’t foresee any problem, says the MD.Bijoy Ghosh  

Lender will retain its name post amalgamation, says MD Chunduru

The amalgamation of public sector lender Allahabad Bank with Indian Bank from April 1 will not lead to the closure of even a single branch, Padmaja Chunduru, managing director and chief executive officer, Indian Bank, said.

“The amalgamation process is on and we have gone far in this issue. The amalgamated entity will be called Indian Bank,” she said.

According to Ms. Chunduru, regular customers may not see any visible change on day one. The change in signage and display boards at Allahabad Bank will be done after a few days due to logistics issue. She said that Indian Bank had wide presence in the South and lesser in the North, which was vice-versa for Allahabad Bank.

As of December 2019, on a pan-India basis, Allahabad Bank had 3,175 branches and the average business per branch was Rs. 116.80 crore. Indian Bank has 2,890 branches, including three overseas branches. The number of clients will increase to 11 crore. The amalgamation might see the merger of zonal offices in Lucknow and Kanpur to cut administrative costs, she said. “Our goal is to ensure that minimum services are not denied to our customers from day one. Since both banks are on the same technology platform we don’t foresee any problem,” she said.

On the impact of COVID-19, she said: “Our people have been working with minimum staff strength at some branches and others from home. We have contributed a day’s salary to the PM Relief Fund. Moreover, we have come out with five different loans for our customers.” “Customers need not have to come to the branches for getting loans sanctioned. It can be done online. Disbursements will also be done online. In the case of bigger loans, signing of documents has to be done physically at branches or at their place,” she said.

As only four days are left for the amalgamation, staffers are working round-the-clock and even during the weekend to see to it that the process goes through easily, another official said.

Meanwhile, an official of Allahabad Bank said the merger process could face a slight delay in the wake of the nationwide lockdown. (With PTI inputs)

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