ING Vyasya Clarification To NSE: Says Merger Not A Threat To Employees

Warding off the anxiety of its employees over the merger with Kotak Mahindra Bank, private bank ING Vyasya has clarified that the proposed merger with Kotak Bank will not affect the employees of the company.

“The merger process entails as per the Banking Regulations Act, approval of the shareholders and thereafter approval from the RBI in addition to CCI’s approval. All protection related to employees has already been captured in the Scheme of Amalgamation which upon approval by RBI, Kotak Mahindra Bank shall fully standby and is obligated to comply with including sections related to employees job security, wages, pension including dearness allowance linked adjustments, provident fund, gratuity etc,” said the company in a letter to the National Stock Exchange (NSE) in a letter dated January 5, 2015.

It further added, “As is evident, we would like to start with a good faith constructive approach that secures all employees and creates growth for all stakeholders including employees after the RBI order. ”

In a regular correspondence with the bank, the NSE had sought clarification from the company (ING Vyasya) after a news report suggested that the employees are worried about the proposed merger.

According to the report, ING Vyasya staff is worried as Kotak Mahindra bank has not made any commitment regarding the continuation of the existing service conditions. It should be noted that following the amalgamation, more than 4,000 employees from ING Vyasya would be on the payroll of Kotak Bank.

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