Integration of technology platforms will remain the key challenge for the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank of India, senior executives at these banks said, even as the government has selected the merger partners on the basis of their IT compatibilities instead of geographic reach.
Harmonising human resource issues will be another key aspect of these mergers, as was seen in the past.
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“Asymmetrical entities are coming together, so there is bound to be some challenges,” Ashok Kumar Pradhan, chief executive of UBI, said in Kolkata on Saturday at an interactive meeting involving the three banks and customers.
PNB, OBC and UBI use Infosys’ Financle software for their core banking solutions, while Allahabad Bank and Indian Bank are on TCS’ BaNCS software, prompting the government to stitch these alliances for a smoother transition.
Source: Economic Times
