AllBank staff gets assurance
The combined entity will have staff strength of around 42,814
- Published 8.11.19, 12:00 AM
- Updated 8.11.19, 12:00 AM
- a min read
Indian Bank has sought external support to frame a mechanism for the amalgamation of Allahabad Bank with itself to ensure transparency in the process.
The management of human resources is a key concern, as the combined entity will have staff strength of around 42,814. Allahabad Bank holds a bigger share with 23,210 employees against 19,604 employees of Indian Bank.
Indian Bank MD and CEO Padmaja Chunduru said on Thursday that a third party would determine the harmonisation of HR policies, cultural integration, talent mapping and retention.
“HR will always be a concern because emotions are involved. It is expected that people are worried about transfers and promotions and whether there would be any discriminatory set-up,” she said after a meeting with the Allahabad Bank staff in Calcutta on Wednesday .
“I have assured that the process would be a fair and transparent one. It will be objective and there would be no unnecessary transfers. There is a big contingent of young officers in both banks. We need to take care of them,” said Chunduru.
“There has been an RFP issued by Indian Bank and there will be a consultant taking care of HR. The idea is that integration should come with a certain fairness, whether it is seniority, promotions or transfers,” she added.
She added that the appointment of a consultant is expected in a month. Besides HR, process integration, tax and financial due diligence and valuations are the other key areas of amalgamation.
The bank has earlier held meetings in Chennai and Vijaywada.
She added that both Indian Bank and Allahabad Bank have reached saturation levels in their individual capacity to grow in a new geography and the merger will help in expansion.
Indian Bank is also in discussions with Allahabad Bank on reaching out to accounts the latter may not be able to address at present. “We are talking to Allahabad Bank that if there is something they are letting go because of their constraints, we can look into it so that the joint entity can retain the account,” she said.
Indian Bank has the risk appetite, growth capital, capability to take larger exposure.