While there are similar products offered by the banks to be merged, there are some overlapping and some unique products.
Notably, the consultant is also likely to suggest on branding of the bank as a merged entity. According to a source, non-anchor banks have sought a new name for the entity formed out of its merger with Punjab National Bank and Oriental Bank of Commerce.
This apart, some of the other areas which require deliberations include HR practices and IT. While IT integration might take up to a year, the three banks are already in the process of making transfers and promotions for next year to make the HR practices more uniform. Also, while branch rationalisation would be on the cards, there won’t be any voluntary retirement schemes. PSBs are already going very slow on recruitment over recent years,
Under the mega merger plan by Union Finance
Minister Nirmala Sitharaman, 10 public sector banks would be consolidated into four. Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation’s second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.
The consolidation exercise will bring down the number of nationalised public sector banks to 12 from 27 in 2017. April 1, 2020 has been set as deadline for completion of the merger process.