InvestorQ : How do you see the merger of OBC, PNB and United Bank? Will it result in layoffs?
Mahima Roy made post

How do you see the merger of OBC, PNB and United Bank? Will it result in layoffs?

Answer
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2 months ago


As of now the banks have confirmed that when the 3 banks merge viz. Oriental Bank of Commerce, United Bank of India with PNB, there would be no layoffs. This has been confirmed by the current chairman of PNB, Mr. Mallikarjuna Rao.

However, it is not really evident if this is a sustainable promise. The merger was primarily designed for synergies and cost efficiencies. To what extent they will be able to manage without a full-fledged VRS is not clear at this point of time.

The merger will create the second largest nationalized bank in India in terms of business and the spread of branch network. However, at some point the bank will have to take a view on costs, consolidation of treasury, centralization of support functions etc.