Wednesday, March 3

Merger won’t slow down business: Syndicate Bank

Mumbai: HR integration will be the top priority in the merger of Syndicate Bank with Canara Bank and branch rationalisation would be looked at only after all aspects of integration are complete. Speaking to TOI, Syndicate Bank’s MD & CEO Mrutyunjay Mahapatra said that the merger process will not slow down business.

Syndicate Bank will go to the board between September 9-15 for approval. “It will not impact lending because we have adequate capital and once deals come, we will keep doing them under risk-management framework,” he said. Syndicate Bank has three-percentage-point higher capital compared to the minimum requirement and therefore will not be impacted by government’s decision to infuse capital into acquiring the bank. “As of now, there is no change in growth strategy. The problem is not of approving loans but of demand,” he said.

Mahapatra, who was joint MD at SBI before joining Syndicate Bank, was part of the integration team during merger of SBI’s associate banks. He headed the IT department, which took centre stage at the time of the merger. In addition to this experience from SBI, the banks will get feedback from Bank of Baroda-Dena-Vijaya integration. After balance sheets of the two banks are merged following approvals, the teams will work on HR processes and IT.

Earlier, Canara Bank MD & CEO R A Sankara Narayanan, told ET Now that there would not be any loss of employment after merger. He had also confirmed that both the banks will stick to business projections. and have a dedicated team to focus on integration without affecting normal business.

One important aspect of the merger will be mapping products. First, the two banks will map products into three categories: unique, same and similar products. Some like savings and fixed deposits are identical. Products like home loans are similar but may have minor differences. “All these products have to be mapped and the integration committee has to take a call. The pygmy deposit is something unique to Syndicate bank. There may be some other relating to SME which are unique,” said Mahapatra.

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