The coronavirus outbreak has disrupted the process of merging state-run lenders, according to a report by Business Standard. The PSB-merger was expected to be effective from March 1
Several state governments have advised against large gatherings as the number of cases of coronavirus, aka COVID-19, rises in India.
The banks have either put on hold or held online sessions for some planned gatherings, such as employee training and customer interface programmes, the report said.
According to the proposal, 10 public sector banks (PSBs) will be consolidated into four.
Moneycontrol could not independently verify the report.
Coronavirus LIVE updates
“There are hopes that the coronavirus spread will be contained in the next two weeks. If not, it is up to the government to take a call on the matter,” a bank official told Business Standard.
Allahabad Bank, due to merge with Indian Bank, was supposed to hold a training session for trainers in Chennai this week. The same will now be conducted through a video conference, the report said.
Indian Bank CEO Padmaja Chunduru was scheduled to meet Allahabad Bank customers this week. But, the plan has been postponed after the government’s caution against non-essential travel.
Several bank officials do not have the option of working from home since the servers are being centralised.
“The coronavirus scare has derailed all plans, especially on staff training, as people cannot come for large gatherings. Banking involves a lot of security, and hence, work from home is not feasible,” an United Bank of India official told the paper.
United Bank of India and Oriental Bank of Commerce
(OBC) will merge with Punjab National Bank. Canara Bank
will merge with Syndicate Bank
. Andhra Bank
and Corporation Bank
will merge with Union Bank of India