While the official date of the merger of public sector banks is just a quarter away, some of the lenders getting merged are seeking a new name.
According to a source, United Bank of India has written to the Government seeking a new name for the entity formed out of its merger with Punjab National Bank and Oriental Bank of Commerce.
Syndicate Bank, which is to be merged with Canara Bank, is also planning to write to the Government seeking a new name for the merged entity, according to a top official in the bank.
Notably, in the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB), the logos of all the three lenders are being retained, with that of BoB being prominent display with the tagline, ‘Power of Three’.
However, this time, the non-anchor banks are not in favour of a Bank of Baroda like branding.
“The name should capture the identities of all the three banks. That is why we have made a request with the government to have a new name,” according to a top official at United Bank of India.
Notably, the committee looking into branding exercise in case of PNB, OBC and United Bank of India merger is also looking to seek help from an external agency for an appropriate name of the merged entity.
“There was a demand from a section of employees to retain the identity of Syndicate Bank in one form or other in the merged entity. However, the management has so far taken no decision on the same,” said Mrutunjay Mahapatra MD & CEO, Syndicate Bank.
However, in the case of the merger of Indian Bank and Allahabad Bank, the latter has suggested retaining the logo of the bank, instead of having a new name altogether.
“If we have a new name altogether, the brand recall value is impacted. This is more likely to impact global operations,” according to a senior official at Allahabad Bank.
Under the mega merger plan announced by the Union Finance Minister Nirmala Sitharaman, 10 PSBs are being merged into four.
Punjab National Bank (PNB), Oriental Bank of Commerce, and United Bank of India will combine to form the nation’s second-largest lender. Canara Bank and Syndicate Bank will amalgamate into a bank. Union Bank of India will amalgamate with Andhra Bank and Corporation Bank. Indian Bank will amalgamate with Allahabad Bank. The anchor banks would be PNB, Canara Bank, Union Bank, and Indian Bank.
The change in bank’s name would be a long-drawn process as it would need parliamentary approval a gazette notification. April 1, 2020 has been set as deadline for completion of the merger process.