Operations integration to take months

Dubai: The full integration of the operations of National Bank of Dubai (NBD) and Emirates Bank will take several months after the mandatory legal process is completed, senior officials from both banks said.

"The bank now has a new board constituted of equal number of nominees from NBD and Emirates Bank. The key management team also has been constituted. The process of integration is expected to begin soon," said Ahmad Humaid Al Tayer, chairman of Emirates NBD.

According to the plan, the principal entities of Emirates NBD will continue to operate under their current legal personalities and trading names for a few more months until a statutory merger in accordance with the UAE Commercial Companies Law has been completed.

It requires, extraordinary general meetings of both companies to ratify the merger with a simple majority with a minimum attendance of 75 per cent of shareholders.

Statutory merger

Although the statutory merger is expected to happen sometime in September following the EGMs, the new board and the management team have already started effecting the key restructuring agenda.

"The boards of both banks have already approved the merger and is sure of the support of the majority of shareholders. Now its is a foregone conclusion that the respective EGMs will support the integration process," said Abdullah Mohammad Saleh, vice-chairman of NBD.

Starting the process of corporate integration, the new board has announced a tem of four key executives who will lead the banks's further integration process.

The team consists of Rick Pudner, the newly appointed CEO of Emirates NBD, Sanjay Uppal, chief financial officer; Joyshil Mitter, general manager and head of integration of Emirates NBD and Shazad Shahbaz, CEO of Emirates NBD's investment bank.

The new company is expected to have more than 6,000 employees with branch network across the UAE, Saudi Arabia, Qatar, the UK and Jersey (Channel Islands), and representative offices in India, Iran and Singapore.

Key executives responsible for the integration process said redundancies and lay-offs are unlikely.

"We are a fast growing bank that needs to expand our domestic, regional and international presence. Through this merger we are targeting to leverage our efficiencies rather than reducing the workforce," said Sanjay Uppal, CFO of Emirates NBD.