The merger pangs.

The merger which was perceived rather apprehensively by all has happened. Now it is time to get down to brass tacks. Merger was nobody's choice neither anyone wished for it. It's a fait accompli. The immediate effect of merger is there for all to see. The bank which has an illustrious pedigree, which has an impeccable and most enviable record of making profit year after year continuously for more than two centuries has now suddenly incurred loss despite making a profit of five digits in crores in standalone basis. All the associate banks have posted losses thus bringing down the formidable banking giant to its knees. For a State Banker it is too much to digest and accept. An institution which was so assiduously built, nurtured and made to go from strength to strength by generations of dedicated employees is now stands emaciated, weak and poor. No doubt it has strong foundation, brand and mammoth size, but the same size if not handled deftly and efficiently may well prove to be a burden.

The degree of success of merger is most crucially hinged on how best we manage this size. The size and scale of geographies & business is the most challenging task staring at the face immediately. And of course the burgeoning NPAs is another major challenge for the bank which is not fully within the realms of the Bank. Because they are sometimes predicated by the external conditions of market, economy and government policies.

Left to State Bank itself, it was grappling with mounting and uncontrollable NPAs. Merger has rubbed salt into the wounds. It has made the situation worst. The success of the merger again at the cost of repetition will all depend how quickly and how deftly we come out of the morass and start leveraging the so called synergies and scale.

Seamless HR integration is another daunting task. Murmur less, noiseless and open acceptance of HR integration and striving for continuous improvement is another area of top priority for the bank.

The Best way of approach is to merge as many number of branches as possible, at the same time not to open further new branches. With the improved staff position of the merger of the branches,the bank can exercise better control over the operations. We are for a very long time managing with staff just enough for survival or even less. Many times we are managing on deputations thus living in Rob Peter to pay Paul syndrome. Post merger this kind of ham handed approach will going to be risky and hazardous.

With the disruptive technology that is being adopted almost on an ongoing basis and which has become the essential and integral part of of banking, recruiting new and young tech-savvy blood which can handle technological tools effortlessly and with ease may become expedient. Offering VRS for those at the fag end of their career may thus make sense. This will improve the age profile and also make economic sense.

Just my stray thoughts.

K.N.Krishnan    94496 12446 .