Union Financial institution of India plansto rationalise about 950 of its branches quickly. “As per the guide’s report, the financial institution has focused to rationalise about 950 branches within the first yr of amalgamation of Company Financial institution and Andhra Financial institution with itself,” a senior Union Financial institution official instructed BusinessLine.
Company Financial institution and Andhra Financial institution had been amalgamated with Union Financial institution with impact from April 1, 2020. The federal government, in August 2019, had introduced the merger of 10 public sector lenders into 4 larger and stronger banks.
“The true advantages of amalgamation will solely be derived if rationalisation of branches occurs,” the official added.
The shut proximity of branches of erstwhile Andhra Financial institution, Company Financial institution and Union Financial institution, in addition to optimisation of operational prices and the necessity to keep away from enterprise overlap are among the many elements which might be driving rationalisation plan.
Union Financial institution now has over 9500 home branches and 13,300 ATMs with 75,000 workers.
In the meantime, the financial institution is scuffling with delay in integration of Andhra Financial institution’s operations, even 10 months after the amalgamation.
In lots of branches, clients will not be being allowed to deposit cheques for clearance. “Within the final 10 days I went two occasions to deposit a ₹60,000-cheque in my account and it was not accepted citing integration issues,” M Karunakar, a buyer of Andhra Financial institution, instructed BusinessLine.
Equally, erstwhile Andhra Financial institution’s ATMs are non-functional in lots of areas, which is forcing clients to withdraw from the ATMs of different banksby paying further expenses.
At some branches, notices have additionally been displayed stating that there was disruption because of the integration of operations.
“It’s true that there was a disruption. However we’re working round the clock and, as of now, 65 per cent of erstwhile Andhra Financial institution’s ATMs are practical,” stated the Union Financial institution official.
The clearing of cheques may even attain normacly in a couple of week to 10 days, he added.