RIZAL Commercial Banking Corp. (RCBC) targets to integrate the
operations of its microfinance subsidiaries by April next year, a bank
official said.
"We target to integrate the operations of J.P. Laurel Bank and Rizal
Microbank by April 2012. We want the two banks to operate as one bank by
then," said John G. Deveras, RCBC executive vice- president and head of
strategic initiatives, in a phone interview last week.
In September, RCBC's board of directors approved the merger of Pres.
Jose P. Laurel Rural Bank, Inc. (J.P. Laurel Bank) and Rizal Microbank,
formerly the Merchants Savings & Loan Association, Inc.
Rizal Microbank, a thrift bank, will be the surviving entity.
Mr. Deveras, who also sits as the president of Rizal Microbank and
Chairman of J.P. Laurel Rural Bank, said RCBC submitted its application
to merge the two banks to both the Philippine Deposit Insurance Corp.
and Bangko Sentral ng Pilipinas two weeks ago.
He said there will be no changes in the two banks' main thrust once they
are merged.
"The two banks will continue to offer microfinance lending to small and
medium businesses, only this time, this will be under one entity that
will have the flexibility of a thrift bank and the expertise of a rural
bank in terms of microfinance," he said.
RCBC ventured into microfinance -- the first large bank to do so -- in
July 2009 after buying J. P. Laurel Bank based in Batangas in February
2009 and Rizal Microbank, which had branches in southern Mindanao, in
May 2008.
"Integration of the two banks' integration is ongoing, the two banks are
currently being run by one management team, headed by me," Mr. Deveras said.
"The way the two banks handle their lending activities and their core
banking systems are the same so there is really nothing to change," he said.
Once RCBC obtains the necessary regulatory approvals, Mr. Deveras will
resign from his post in Rizal Microbank. RCBC Senior Vice-President and
Head for Microfinance Ma. Lourdes Jocelyn S. Pineda will sit as the new
president of the new bank.
Regarding the banks' employees, he said: "all the staff and management
of J.P. Laurel will be separated and rehired by Rizal Microbank the next
day."
The merged bank will have P1.2 billion in assets.
Ms. Pineda earlier said that she targets to have 27 to 30 branches by 2014.
Currently, J.P. Laurel Bank has 10 branches in southern Luzon while
Rizal Microbank has eight branches in southern Mindanao.
RCBC shares closed unchanged at P30.20 apiece yesterday. -- Ann Rozainne
R. Gregorio
--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline Phones: +63495010127 and +63495762924
Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
CONSULTING - http://www.carlosani.com
My News Clippings - http://www.myclipps.posterous.com
Family website: http://www.anifamily.net
------------------------------------------
