Pnb Plans Benefits For Nedungadi Staff
Punjab National Bank (PNB), while agreeing to take over the entire workforce of Nedungadi Bank, has decided to offer a compensation in line with those prescribed in the Industrial Disputes Act to all employees who decided to opt out after a merger between the two banks.
The decision was taken at a board meeting of PNB on Saturday. Bank sources said that the board took stock of the situation and also discussed the steps with regard to manpower and infotech that would be required to be initiated after the merger, which will formally take place either on February 1 or 3, depending on when Reserve Bank of India issues the necessary notifications. The moratorium placed on Nedungadi Bank comes to an end on February 1.
The Industrial Disputes Act prescribes a compensation of 15 days salary for the number of years of service rendered.
The report of the valuers, M Bhaskar Rao & Co is also expected in the next couple of days but the sources said that the level of liabilities could go down from the Rs 35 crore level at the end of March 2002.
The sources said that PNB will make some investments in making the IT systems of the two banks compatible. They, however, did not put a figure to it saying that the investment needs would be analysed before arriving at a the requirement.
PNB was shortlisted by the finance ministry and RBI for taking over Nedungadi Bank in September this year. PNB would gain additional 173 branches of Nedungadi Bank, of which over 110 branches are in Kerala, and a pool of NRI accounts.
In terms of business, however, the Nedungadi Bank is expected to add only 2.24 per cent to PNB