“We Have a Larger Role to Play for the Nation”
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CORPORATE CONNECT INITIATIVE MONDAY, MARCH 1, 2021 AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, DELHI, HYDERABAD, JAIPUR, KOLKATA, LUCKNOW, MUMBAI, PUNE “We have a larger role to play for the nation” The amalgamation of Andhra Bank and Corporation Bank with Union Bank of India has created one of the largest banking behemoth in the country and will bring benefits to each and every stakeholder employees, considering the rela- for creating an organisational struc- The pandemic has further accel- have rolled out a new organisational tively younger workforce with an ture and culture that will imbue erated the digitisation in everyday structure with creation of new verti- average age of less than 40, cross the ‘best of three’ spirit. banking business. Union Bank cals and a strong systems and pro- cultural shift after amalgamation Even during the times of COVID, has seen a significant volume of cess, comprehensive products and will bring in higher efficiency, myself and my Top Management transactions moving to digital services to cater to needs of different healthy competition and create team were connecting with platform. The use of U-mobile customer segments. Above all, our more opportunities for their career employees through social media app, for instance, has significantly biggest impetus would be our strong progression and growth. and digital interactive platforms. increased. Amidst pandemic, the customer base of over 120 million RAJKIRAN RAI G. Bank has focussed on creating and our committed workforce of contactless acceptance infrastruc- over 77,000. Managing Director & CEO, Union Bank of India ture and also enabling contact- less payment modes. Necessary Union Bank of India has WE HAVE MORE THAN 5% MARKET SHARE IN OVERALL additions and modification is recently scored a stylish What are the key advantages 77,000 and a customer base of BUSINESS IN 22 STATES. HIGHER MARKET SHARE WILL HELP being continuously carried out century; what is your overall envisaged with this new, over 120 million. We have more THE BANK TO IMPROVE ITS VISIBILITY AND REACH TO GRAB to enable our customers to avail vision for the bank’s future? combined entity, post the than 5% market share in branch In its 102-year long journey, the HIGHER BUSINESS AND AN EDGE OVER OTHERS. banking from the comfort of their amalgamation? network of scheduled commercial home. Besides, the Bank has also Bank has seen through many chal- The amalgamation is a part of the banks in more than 15 states. We taken big strides in digital lending lenges to have a Pan-India network long term banking reform agenda have more than 5% market share as well. Our recent initiatives like today and also having significant of the Government. The policy in overall business in 22 States. How would you describe We were constantly engaging with UnionDial, pre-approved personal overseas presence. With amalga- intent is creation of few large and Higher market share will help the your mantra for managing employees by conducting regular loan facility and Straight Through mation, the Bank has become one strong banks to effectively meet Bank to improve its visibility and what is now an even larger surveys on various issues so as to Processing (STP) for Shishu loans of the biggest financial institu- the financing needs of econo- reach to grab higher business and organisation? understand their mindset and to under MSMEs, etc. are important tions in the country. Our vision is my aspiring to be among Top 3 an edge over others. As a large I have been engaging with em- rectify lacunas, if any, during the for digital on-boarding. to be a leading next generation globally. If you look at the Chinese bank, we have a larger role to play ployees at regular intervals. During amalgamation process. It is only digital savvy bank with focus on banking system it is almost twice for the nation, both in credit deep- the initial phase, various Townhall with the help and support of each What have been the key growth inclusive, responsive and respon- the size of its economy, where- ening and financial inclusion. Meetings were held across the and every Unionite, we could reach drivers for Union Bank of sible banking, through customer as Indian banking system is far The amalgamation will bring country wherein management all the milestones and target set India and what aspects do you centricity, employee empowerment smaller. The amalgamation of benefits to each and every addressed employees of all three with regard to amalgamation well see providing impetus going and value creation for all stake- Andhra Bank and Corporation stakeholder. For the Bank, it organisations to alleviate their con- within the timelines. They have forward? holders. The amalgamation also Bank with Union Bank of India helps improve efficiency through cern and apprehensions. Besides, made this complex process quite Union Bank is uniquely placed gave us an opportunity to revamp has created one of the largest economies of scale and scope. For to manage cultural integration simple. today in terms of ensuring timely our organisation structure, creating banking behemoth in the country customers, larger banks offer wider in the run-up to amalgamation, amalgamation with a good cultural new verticals, new product lines, with a business mix of over Rs choices of products and servic- we conducted “Triveni Sangam” How is Union Bank of India integration across the organisation. new processes etc. Going forward, 15 lakh crore and a network of es; the efficiency gains will bring wherein the Executives of the Bank continuing to facilitate customer The synergy of the amalgamated digital and digitisation will be a 9500 plus branches, 13000 plus down the intermediation cost and met and discussed the growth needs through digital banking entity will provide a strong impetus major focus area and growth driver ATMs, an employee base of over improve turnaround time. For path for the Bank and agreed upon during this challenging phase? to the growth, going forward. We for the Bank. The perfect merger demystified Share exchanges ready’ by enabling A glimpse of the processes involved investment in various in amalgamating Andhra Bank areas. These include and allotment upgrades in Union and Corporation Bank into Union Bank of India’s analyt- FINANCIAL FACTS OF THE AMALGAMATION AND Bank of India ics centre of excellence, enhanced digital IMPLEMENTATION PROCEDURE FOLLOWED pril 1, 2020 marked an WIDER NETWORK banking products, best- extremely significant Union Bank of India in-class IT platforms he Board of Directors of the members nominated by Transferor event for the banking becomes the fifth larg- and a wider variety of Transferee Bank and Transfer- Banks, submitted its report to the sector in India; the est PSU bank in India in products and services. or Banks at their meeting held Board of Directors of the Transferor Amerger of 10 public sector lenders terms of total business. on March 5, 2020 approved Banks and Transferee Bank to address into four bigger and stronger banks Its customer base of over STRONGER Tthe following Equity Share Exchange the objections of minority shareholders came into effect from that date. 120 million will be served TOGETHER Ratio for amalgamation of Andhra in relation to the Share Exchange Ratio. With this, the number of public The communication Bank and Corporation Bank into The Board of Directors of Union sector banks in India was reduced also directly addressed Union Bank of India: Bank of India at its meeting held on to just 12 from 27 in 2017. Union Bank of India’s • 325 equity shares of the face value March 17, 2020 considered the report The mega merger that drew future partners at of Rs.10 each fully paid up in Union of the Expert Committee and decid- most attention was Manga- Images: Freepik.com Andhra Bank and Bank of India, for every 1,000 equity ed that no change is required in the lore-based Corporation Bank and COMPLETE CLARITY Corporation Bank and shares of the face value of Rs.10 each Share Exchange Ratio approved by the Hyderabad-headquartered Andhra reassured them that Board of Directors of Transferor Banks Bank being amalgamated into Un- Addressing the top 5 concerns they can look forward to the same and Transferee Bank in their respec- ion Bank of India. Following the of the erstwhile Andhra attention and care from the amal- tive meetings held on March 5, 2020. merger, all investments of Andhra Bank and Corporation gamated entity as from their orig- The Board of Directors of the Union Bank and Corporation Bank came Bank customers, the inal banking partner, stating that Bank of India approved allotment under Union Bank as a combined communication, also clarified “We will take all the steps to make of 2,98,40,25,503 equity shares entity. the following: sure that your banking relationship (2,97,88,35,104 shares in demat On the eve of the merger, Rajkiran 1. No changes to occur in not only lives up to your expecta- mode and 51,90,399 in physical Rai G., Managing Director & CEO, account numbers and tions but also exceeds them.” mode) to the shareholders of Andhra Union Bank of India, shared an offi- cards for customers. Bank and Corporation Bank. cial communication to the custom- across a network of 9500 plus 2. Continue banking with SERVICE FOCUS The Bank received listing ap- ers of the two banks being merged branches and 13000 plus ATMs by the same bank/branch The amalgamation process had Image: Freepik.com proval from BSE and NSE for into the amalgamated Union Bank an employee base of over 77,000. for any banking related been initiated with a strong 2,97,88,35,104 shares issued in of India entity, providing insights The complimentary geographic information.