Icici Clubs Management Grades Prior To Merger

In the run-up to the reverse merger with ICICI Bank, ICICI has slashed its management grades to have an identical administrative structure like that of the banking subsidiary.

ICICI had changed its management structure by combining two levels and cutting down the management structure to eight levels. The current structure in ICICI -- bottom-up -- consists of assistant manager, manager, chief manager, assistant general manager, deputy general manager, joint general manager, general manager, senior general manager and executive director.

Earlier, ICICI followed a different grading structure which started off with a management trainee, assistant manager, deputy manager, assistant vice-president, vice-president, senior vice-president, deputy general manager, joint general manager, general manager, senior general manager and the executive director.

ICICI Bank also has eight levels under its executive director. The structure in ICICI Bank is, however, slightly different in the nature of designations with management trainee, assistant manager, deputy manager, manager, vice-president, senior vice-president, executive vice-president, senior executive vice-president and executive director.

According to sources, the human resource merger could face a problem as there are some common departments such as treasury and risk management groups. Also there is a difference in the salary structure in ICICI and ICICI Bank.

ICICI Bank executive director Nachiketh Mor said: "Over the next six months, we would be looking at resolving all human resource department-related issues. There is no plan to sack any employee or have a voluntary retirement scheme. It is only a matter of allocating responsibility."

He added there is a lot of differences in the business of both the treasuries. The combined entity will have a larger treasury to manage.

Following the reverse merger, ICICI Bank employees are also likely to get a hike in their salaries.

ICICI has a salary structure which is around 20- 25 per cent higher than ICICI Bank. The management and the salary structure in ICICI Personal Finance Services and ICICI Capital Services is similar to that of ICICI, and the integration of these subsidiaries is not likely to pose any problem, sources said.

The bank is likely to opt for an incentive-based structure to raise the salary level. A high-level in-house team is working on the integration strategy which will be placed before the senior team next week once it comes back from abroad.

The strength of the ICICI Bank post-merger will be around 8,275 employees. ICICI has an employee strength of around 1,100, ICICI Bank 4,700 and the rest with ICICI Personal Financial Services and ICICI Capital Services.