Merger of banks: Synergy benefit relevant in Gujarat, says Dena Bank ED

Employees' interest will not be harmed: Ramesh Singh, Executive Director, Dena Bank

Ramesh Singh, Executive Director, Dena Bank, tells Abhijit Lele that the merger is a pragmatic proposition and the integration process is expected to be hassle-free. Edited excerpts:

What does merger move means for customers and the employees?

It is a pragmatic proposition by the Government of India. Employees’ interest will not be harmed. There will be systematic communication to help understand entire process. Business Synergies will be maintained. This is more relevant in Gujarat where Dena and BoB have strong presence.

Would technology, a key aspect in merger, pose any challenge?

We are on same technology platform Finacle, which will give us further synergy. No hurdles are expected in the integration process. BoB is ahead in technological innovation, so our customers (Dena Bank) will get new digital banking platform.

When will the merger deliberation begin?

We expect work on it to start shortly. We will get to know about board meeting in a day or two. The boards of all three banks have to give approval for proposal. 

Was this the right time for this merger?

Absolutely. How can we decide which timing is good and which is not? It is a confidence-building measure. Now, the banks’ combined customer base would be in excess of 50 million. There is a definite advantage when you have a strong bank with robust capital base and network. In the south, Vijaya Bank is very strong, Dena and BoB put together are strong in Gujarat and Maharashtra. This synergy will be available for customers of all banks.