State-run Punjab National Bank (PNB) on Thursday said proposed bank merger with United Bank of India and Oriental Bank of Commerce, won't lead to any job loss in the bank.
In an interview to CNBC-TV18's Ritu Singh, Sunil Mehta, managing director and chief executive officer, said, "Banking system is already undergoing a transformation. A lot of brick and mortar branches are now getting more into the digital mode and new system, new products and new processes are being created. A lot of our operations have now shifted to the back office functions and centralised processing centres."
"For example, our bank has created the centralised loan processing centres, we have already created the back office for trade finance, we have already created a back office for KYC, we have already created a back office for account opening, so the entire system and processes will also undergo a change in the amalgamated entity and those changes will ensure that entire workforce is redeployed suitably so that maximum benefit of synergy are derived by the amalgamated entity," Mehta said.
According to Mehta, PNB has no plans to offer any voluntary retirement scheme as the bank need each and every employee of the three entities.
On stressed assets, he said, "The banking industry itself has started the cleaning up exercise way back in 2016. By now, the cleaning up has already happened in most of the cases. Some stray cases may keep coming but that maybe something different. If you see the overall scenario, the gross NPA levels of most of the banks have come down, so that is an indication that clean-up has already happened. Even without any synergy, the amalgamated entity has a better capital adequacy ratio, better NPA ratios as the three entities will look very great post amalgamation. So, I do not think it will pose any challenge in terms of capital."