Managing Director & Chief Executive Officer of Punjab National Bank SS Mallikarjuna Rao has said that there will be no layoffs of employees due to the merger of Oriental Bank of Commerce, United Bank of India with Punjab National Bank.
"There will be no retrenchment of employees due to the merger Oriental Bank of Commerce, Union Bank of India with Punjab National Bank," Rao said.
#Correction: There will be no retrenchment of employees due to the merger Oriental Bank of Commerce, *United Bank of India with Punjab National Bank: SS Mallikarjuna Rao, MD & CEO, Punjab National Bank pic.twitter.com/3oyBRdXGg4- ANI (@ANI) August 24, 2020
The amalgamation of Punjab National Bank, United Bank of India and Oriental Bank Of Commerce come into effect from April 1, 2020.
The merger of the three banks has led to creation of the country's second-largest nationalised bank in terms of business and branch network. "The synergy from the amalgamation will create a globally competitive, next-generation bank, PNB 2.0," said the bank in a press release. The bank added all customers of Oriental Bank of Commerce, United Bank of India will be treated as PNB customers once the merger is complete.
'PNB 2.0' will have a business of Rs 17.95 lakh crore (loans plus deposits) and will be at least 1.5 times that of PNB.
Last year in August, Finance Minister Nirmala Sitharaman had announced the consolidation of 10 public lenders into four big banks.
Sitharaman announced that the government had decided to merge Punjab National Bank, Oriental Bank of Commerce and United Bank; Canara Bank and Syndicate Banks; Union Bank of India, Andhra Bank and Corporation Bank; and Indian Bank and Allahabad Bank.