‘This is the best combination possible’

Vijaya Bank’s Managing Director and Chief Executive Officer

R A SANKARA NARAYANANsaid these three banks were the best possible combination for an amalgamation. In an interview with Anup Roy, he said the existing employees will not be affected. Edited excerpts:

What is the ramification of this merger for the sector? Is it going to do any good for the industry and the three banks?

Definitely yes! The combined entity gets presence, balance sheet size, brand equity, and it will have lower non-performing asset (NPA) ratio than the average. It will have better profitability, while capital is assured. We can also share our individual expertise in the new bank. The skill gaps would be addressed, sharing knowledge will develop operations.

Why do you think the government went with this combination?

Why not? Among 21 banks, this is the best combination available.

Vijaya Bank is decidedly a better bank in terms of ratios, but it is small. Do you think it should not have been merged ?

We are not merging; it is an amalgamation. If you have seen the government presentation, we have been considered equal. What matters is the efficiency and performance of the new entity should be better than the sum of the entities.

Often, when a large bank merges with a smaller entity then the smaller bank employees are treated roughly. Do you worry for your staff?

I am confident that will not happen. The government assured that.