Some of the top executives who were stranded due to closure have begun to take on their new roles and draw strategies at headquarters, say people familiar with the matter.
However, the reorganization and rationalization of branches has not yet begun, even as office managers in the field began to work to push credit growth in line with government goals.
“We have kept the disturbance to a minimum by retaining officials in the same or nearby centers as far as possible. Where there is fusion of zones, some relocation is necessary. Now it will certainly gain momentum with the opening of flights, ”said Padmaja Chunduru, CEO of Indian Bank. However, she said the organizational restructuring began even through the Covid period.
PNB, Union Bank, Canara Bank and Indian Bank have grown larger following the large banking union, which involved merging 10 banks into four from 1 April. These banks with their greater balance may be able to borrow big, but they would be able to exercise their full potential until the post-merger restructuring becomes operational on the ground.
Some of the readjustments could not be completed as the country closed since March 24 to tackle the Covid-19 pandemic. The exercise may take longer than expected since the banks have been working with minimum strength since the closure. IT integration is another area where banks face challenges due to skeleton staff.
“Organizationally, challenges are more from operating branches that ensure staff security and customer service,” Chunduru said, adding that the interoperability system for banking transactions is being implemented and banking customers are benefiting from it.
Indian Bank will now be under 14 field managers overseeing 78 zones with the “FGMs already handling their zones virtually. After its merger with Kolkata-based Allahabad Bank, the bank has divided the markets east and northeast into two and assigned FGMs to oversee them.
PNB, on the other hand, has made Kolkata its zonal headquarters after the merger with Oriental Bank of India and Kolkata-based United Bank of India. Kolkata zone is headed by a CEO.
“The new FGM offices in PNB have become functional from today,” said a senior bank official.
“The economy now needs support from public sector banks. The ability to lend from public sector banks is quite high after the merger,” Union Bank of India CEO Rajkiran Rai said a few days back at a webinar.
Andhra Bank and Corporation Bank were merged into Union Bank of India, while Syndicate Bank was merged into Canara Bank under the megafusion plan.
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