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Why we are right-sizing, Intercontinental Bank

The need to perfect the Intercontinental Bank Plc Project Transformation and preserve value for shareholders informed the recent staff rationalisation in which 1,346 staff of the bank were disengaged, its Managing Director, Mahmoud Lai Alabi, has said.

Reacting to the gale of sack in the banking industry and the outcry by the organised labour, Alabi disclosed in a statement yesterday that the bank’s action was specific to Intercontinental Bank and not generally a response to a directive from the Central Bank of Nigeria (CBN) as being speculated in some quarters.

The Intercontinental Bank boss noted: “Though there was a letter specifically written by the Banking Supervision Department of the CBN in response to the financial report submitted by the bank and was not sent to any other bank as being misrepresented by some people. The letter only advised the bank on what to do on the way forward and not a directive from the CBN to all banks.

“The advice from the Banking Supervision Department, which does not necessarily require the approval of the CBN management, however, coincided with our plans to cut cost under our new Project Transformation.”

He said while the exercise was being executed, the various unions in the bank as well as other stakeholders were engaged and carried along in order to save the bank for future generations, given the financial position of the institution.

“The disengaged staff were all paid their 13th month salaries, December salaries, salary in lieu of disengagement and also severance packages. All these were done to give the disengagement exercise a human face,” Alabi said.
The Intercontinental Bank boss assured that as the bank’s financials improve, some of the disengaged staff would be recalled.

“As a matter of fact, we have advised all the affected staff to leave their forwarding addresses with the Human Resources Department for possible recall as the need arises.

“I must also add that both management and staff of Intercontinental Bank have made sacrifices on all generous and outrageous bonuses, all of which has since been suspended,” he said.

He also assured that going forward; none of the core staff of the bank would be disengaged.
However, he said t


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