ILOILO CITY -- One Network Bank (ONB), the country's largest rural bank,
is making its foray into the Visayas via a merger with an Iloilo-based
rural bank.
One Network Bank expands to the Visayas by merging with an Iloilo bank.
Officials of ONB and the six-branch Rural Bank of San Enrique announced
the merger, through a share swap, over the weekend.
Alex V. Buenaventura, ONB president, said the deal still needs to be
approved by the Bangko Sentral ng Pilipinas but the plan is to rename
the six branches of the Rural Bank of San Enrique to ONB within two
years and to set up five more branches within that timeframe.
ONB has no presence in the Visayas despite its 87 branches, which are
mostly in Mindanao. Its chief is bullish, saying the branches in Iloilo
are just a start. "We believe we can replicate in the Visayas what we
have done in Mindanao," he said.
Mr. Buenaventura said ONB chose Iloilo City because it is progressive
and yet many of its residents -- and those in nearby municipalities --
are either unserved or underserved.
He said ONB will introduce loans to teachers, for which it is known, in
Iloilo.
"We will continue to be competitive in providing loans to teachers," Mr.
Buenaventura said.
The merger with the Rural Bank of San Enrique was a result of a
year-long negotiation
Arturo P. Muyco Jr., president of San Enrique, said the rural bank
agreed to it because of difficulty implementing a P25-million five-year
development plan.
He said his group decided to agree to a merger because "we found it more
profitable (for us than being on our own)."
The entry of ONB is a blessing for the smaller rural bank, said Mr.
Muyco, as "(ONB) will be providing us with innovative products."
The two officials assured the employees of the smaller bank they will
not be displaced.
Mr. Buenaventura said ONB will continue to look for more opportunities
nationwide. "We will continue to look for unserved and underserved but
progressive areas," he said.
The bank remains focused, however, on Mindanao. -- C. Q. Francisco
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