PSU bank merger: Indian Bank, Allahabad Bank confident of growth

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Updated: September 24, 2019 7:02:38 AM

Addressing the gathering, Indian Bank MD & CEO Padmaja Chunduru expressed confidence that the amalgamation will open up new vistas of growth.

Indian Bank MD & CEO Padmaja Chunduru, along with board members of Indian Bank and Allahabad Bank, at a Town Hall meeting in ChennaiIndian Bank MD & CEO Padmaja Chunduru, along with board members of Indian Bank and Allahabad Bank, at a Town Hall meeting in Chennai

Indian Bank and Allahabad Bank have expressed confidence that the amalgamation will open up new vistas of growth and could effectively thwart the challenges from the private players. Following the in-principle approvals from the boards of both Indian Bank and Allahabad Bank, a Town Hall meeting was conducted in Chennai recently to address various challenges and discuss the growth potential of the merger.

Addressing the gathering, Indian Bank MD & CEO Padmaja Chunduru expressed confidence that the amalgamation will open up new vistas of growth. While the common CBS platform will make the amalgamation relatively smooth, it is the integration of the human resources to form a wider talent pool that holds the promise of strong growth for the bank besides greater exposure and better career prospects for the employees.

She said the synergies would come from wider presence pan India, economies of scale, higher investments in technology and improving productivity. The widespread geographical presence will prove to be excellent complementary factors that will lay the perfect platform for creation of a strong bank. Customers would benefit from the better customised product and service offerings and digital initiatives that will be rolled out. Padmaja emphasised that HR integration will be the main focus in the amalgamation process. She exhorted the employees to continue their focus on business growth and customer service during the transition period.

The meeting saw participation from around 1,200 employees from both the banks.

Allahabad Bank MD & CEO Mallikarjuna Rao explained the factors that led to the need for having large-sized PSU banks. “This propels economic growth by effectively thwarting the challenges from the private players. The customisation that had gone into the CBS platforms of both the banks will require deeper attention in the process of unification of products and services. There will be capacity for better adaptability to faster technological changes, achieve economies of scale,” he said.

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