The 1,300-odd employees of Global Trust Bank may have to face a cut in salaries. GTB has salary scales, which are significantly higher than those of Oriental Bank of Commerce, with which GTB is being amalgamated.
According to the draft amalgamation scheme announced by the Reserve Bank of India, employee salaries at GTB would be protected even after it being amalgamated into OBC "for a maximum of three years".
The Global Trust Bank Crisis: Complete Coverage
The scheme also envisages that before the stipulated period, salary levels should be aligned at both the banks depending on the qualification and experience of the employee.
OBC being a nationalised bank has its salary levels dictated to by the government. At GTB, an assistant vice-president can earn up to Rs 60,000 a month, which is about Rs 25,000 more than the monthly salary of the chairman and managing director of a nationalised bank.
Employees at GTB point out that the salary cut might not be effected immediately as the amalgamation of the two banks could be affected. "In my estimation it would take at least a year for any salary restructuring to happen. The employees know the systems, the markets, the products and the customers. You do not want them to leave as then the synergies will just not happen," a senior management employee of GTB said.
Another senior employee at GTB said that since most of the workforce at the bank was very young, they would not face a problem getting jobs elsewhere.
"At the same time it is important that the content of the work and the issue of being in a transferable job are also addressed. Otherwise these are issues that could go also lead to attrition, which is not a good thing," he said.
Moreover, some officials at GTB point out that the OBC chairman and managing director B G Narang has in his interactions pointed out that 'We cannot pay old time banker's fees to tomorrow's bankers," This, according to them, is a pointer to the fact that employee salary levels at GTB may be protected.