Jayakumar, who is in Goa for the bank's annual review meeting, wrote a letter to the employees to pump up the morale of the employees asking them not lose sight of the transformational journey that they have embarked upon.
P S Jayakumar, chairman and managing director, Bank of Baroda, is likely to get an extension when his three-year term comes to an end in October 12, 2018, according to sources, as the government would like to have continuity while the banks transitions with the merger.
Jayakumar, who is in Goa for the bank's annual review meeting, wrote a letter to the employees to pump up the morale of the employees asking them not lose sight of the transformational journey that they have embarked upon.
"Consolidation, he said, "is inevitable with the banking industry is fragmented with 21 public sector banks having limited differentiation, sub-optimal scale of operations and unhealthy price competition for similar business."
"For us the amalgamation will help in scaling up the size and increasing geographical reach. The combined entity will have leadership position in Gujarat and increased network in South, particularly Karnataka and Maharashtra.
The increased customer base with ability to offer add-on-services to customers of amalgamating banks will help the combined entity to expand its range of services and ability to grow business," Jayakumar wrote to his employees. DNA Money has a copy of the letter.
Jayakumar, who enjoys an enviable support of his 56,361 workforce due to his employee friendly policies, tried boost the confidence of the employees by telling them that it's the stronger balance-sheet of the bank that enabled it to play a lead role in the consolidation and that the Board of directors of the bank would meet shortly to consider the amalgamation.
To instill confidence in the employees who are still reeling under the shock of the surprise merger on Monday, Jayakumar wrote that each of the amalgamating bank has its own strengths and niche relationships which can be pooled. BOB could leverage upon the same to build a stronger bank.
"We would also like to state that Barodians should not have any apprehensions on the amalgamation as the service conditions will remain unaffected. The combined entity will offer more and diverse opportunities to employees since it would have a broader geographical footprint to operate," Jayakumar wrote instilling confidence in the employees.
He also told his employees not to let the merger affect the bank's pursuit towards business growth. The operating units should continue to focus on the growth of business as hitherto. The journey of transformation to create more value for all stakeholders will continue at BOB he assured the employees.
He signed off the letter saying, "We are sure that all Barodians would make the amalgamation a success and contribute to make the amalgamated entity a premier and modern bank which is competitive in the market place."
The government has started a new experiment with BOB where the government appointed two outsiders to the top post in the bank. Ravi Venkatesan, former chairman of Microsoft India and ex- independent director of Infosys, joined the bank as its chairman. P S Jayakumar, an ex-Citibanker, took over as MD & CEO in 2015. Later, a number of professionals were also inducted into the bank to transform it. Venkatesan, whose term came to an end last month, did not want an extension.
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 "P S Jayakumar")
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