Karavali bank merger; at least a year required for full implementation!

Team Udayavani, Sep 23, 2019, 8:33 AM IST

Mangaluru: Although it has been announced that Syndicate, Corporation and Canara Banks, which are the pride of the coast will get merged with Union Bank of India, the complete process will need a full year at least.

After the announcement of the merger, a meeting of the managing council of the banks was held and the merger decision was taken. Currently the process of submitting the letter to RBI via SEBI is being conducted. Then it will become a notification. All the remaining process will be finished by the end of this financial on Mar 31^st and from Apr 1^st onwards, the bank merger process will begin.

The action on the official merger of the banks will begin only after the annual financial report of the banks is inspected. Since the banks are using different software, they will have to be updated to the software being used by the merging bank. Issues regarding the savings plans, loans, interest on the loans and other issues will have to be resolved. Much care needs to be taken with the HRMS and documents of the banks during the merger. These are process which need time.

Besides the number of branches of the merging banks will have to be cut down, and the names too may be changed. Everything will undergo a change including the passbook. Staffs too might get transferred.

What is the future of Corporation Bank’s head office?

The head office of Corporation bank is at Pandeshwar in Mangaluru and presently there is a question on what its future might be. Earlier, three attempts have been made to transfer the office to Bengaluru or Mumbai but the decision was dropped due to the locals, fights and representatives of the people. But presently, the bank has lost its very identity and the future of the head office is very unpredictable.

Vijaya bank merger in the process

Although it has been earlier announced that Vijaya bank will merger with the Bank of Baroda, it was not completely implemented. There is no information regarding the closure of any branch. After being converted into Baroda bank, the staff were trained at Mumbai, Baroda and Bengaluru. The logo of Vijaya bank is still there in Baroda. Beneath the Vijaya Bank board lies added in small fonts “New Bank of Baroda”, but no one knows until how long this will remain.

No information to officials; Persistent silence by people’s representatives

Since the announcement of the merger of the banks, the district officials have received absolutely no information regarding any development. Besides, it is very interesting to note the persistent silence maintained by the representatives of the people regarding the merger of the bank and the destruction of the identity of the coast.