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Deccan Herald » Business » Detailed Story
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OBC in dilemma over absorption of GTB employees
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DH News Service Kolkata:
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The biggest stumbling block for absorption of the GTB employees in the post-merger period is the fat salary which they used to draw prior to the GTB collapse.
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Oriental Bank of Commerce (OBC) which is awaiting tabling of the report on the realignment of employment of more than 900 staff of Global Trust Bank (GTB), might not absorb all of them in future, OBC Chairman-cum-Managing Director B D Narang indicated here on Tuesday.
The report on realignment of employment of GTB employees by the National Institute Bank of Management (NIBM) which OBC has already received, is due to be tabled for discussion before the board of the bank on April 29 next, Mr Narang told newsmen here on the sidelines of a news conference to mark launching of the bank’s initial public offer (IPO).
Of the 1300 staff at the time of acquisition of GTB by OBC, 367 have already left so far; however, a big question mark hangs on the absorption of the remaining staff by OBC in view of a massive difference in the salary structure between GTB and OBC prior to the merger.
To a pointed question on whether OBC will absorb all the GTB staff in the days ahead, Mr Narang said “We may keep them for three years; but thereafter, only the efficient will remain. Talks with the Reserve Bank of India (RBI) have been on in this regard.”
The biggest stumbling block for absorbtion of the GTB employees in the post-merger period is the fat salary which they used to draw prior to the GTB collapse and the total amount of GTB’s loss at the time of acquisition by OBC touched Rs 1,450 crore, Mr Narang pointed out.
“Since then, we have adopted some tough fiscal measures and managed to neutralise more than Rs 1,000 crore so far; the balance will be adjusted in the next 12 to 18 month period,” he added.
Asked whether OBC has been mulling measures for the recovery of GTB’s NPA worth Rs 984 crore, the OBC chairman felt that around 30 per cent of the NPA might be recoverable. OBC is also aiming to clock operating profit in the first quarter of 2005-06.
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Wednesday, April 20, 2005
