The branding exercise of the amalgamated public sector banks will be along the lines of the Dena, Vijaya and Bank of Baroda merger, with the logo of the bigger bank getting prominence.
According to Padmaja Chunduru, MD and CEO of Indian Bank, with which Kolkata-based Allahabad Bank will be merged, the name Indian Bank would be retained after merger, and the branding exercise will be more or less uniform for all public sector banks.
“The name of Indian Bank will continue, and the logo of Allahabad Bank will be a prominent part of the branding. The top part of the logo will have the logo of Indian Bank and the lower half will have Allahabad Bank’s logo. This is common among amalgamated banks, and will be the same for all banks,” said Chunduru over a conference call.
Also, while the Allahabad Bank board will be dismantled on March 31, three of its general managers and executive directors will continue to work out of Kolkata.
There won’t be any immediate disruption in the mid-management segment in terms of transfers, she said. The merged entity will have its headquarters in Chennai, and would have 6,000-plus branches.
“We wanted to avoid disruptions immediately. Some senior level management will have to move, some GMs will continue in Kolkata,” said Chunduru.
The combined entity CRAR of the bank is pegged at 13 per cent at the inception. Also, while there is no immediate need of growth capital, the merged bank might go for raising funds from the market based on prevailing conditions in the second half of next year.
Basic services will be made operational for customers of both banks from April 1. After merger, the total business of the combined entity would be close to Rs eight trillion.
However, once the bank’s total business reaches Rs 10 trillion, it will have a CGM (chief general manager) in Kolkata.
In the first year, the merged entity is looking at about 12 per cent credit growth. However, based on the prevailing economic situation, the bank will relook at the target in two months, she said. The combined loan book size of the bank will be Rs 3.82 trillion initially.
Further, the merged entity will have retail and corporate banking share in the ratio of 50:50. Allahabad Bank has a corporate book of 60 per cent and retail is about 40 per cent, while in case of Indian Bank, the mix is the opposite.
Chunduru said while the long-term impact of Coronavirus is yet to be seen, it won’t disrupt the merger roll-out plans on day one. However, the bank will realign its business plans based on market conditions.
“Given the current situation, there will be impact of many companies, and we have to see if we can contain or not. Otherwise we will realign our plans,” she said.
“We are gearing up for the amalgamation, despite all the concerns which Coronavirus is causing. We are taking all steps to ensure, employees and customers are safe and services are uninterrupted,” she added.