IFCI to introduce VRS before PNB merger

In an effort to restructure its staff before the merger, IFCI would introduce another round of VRS for its employees. Stating that there would be no problem in the merger process for the staff of IFCI, outgoing chairman and managing director of IFCI, V P Singh said IFCI would bring the skill and expertise of investment banking to Punjab National Bank (PNB).

Describing the merger as a ‘win-win’ situation for both the FI and the PSU bank, Singh told reporters that IFCI can act as the investment banking division of PNB. Singh said that the proposed merger of IFCI with PNB was the best option since the government had the constraints of not being the able to pump in funds every year and IFCI could not find a strategic partner till now.

Global consultant McKinsey had suggested that liquidation was not an option for IFCI as its cost would have been much higher, Singh said referring to the consultant’s report submitted last year.

He also said the profit making subsidiaries of IFCI like ICRA, I-Fin and venture capital arm could bring more value to PNB. Stating that the board of directors would oversee the merger process, Singh said the day to day functioning of the FI till the merger would be looked into by the two executive directors along with other members in the FI.