Bank Merger in India – Govt. to Merge BOB, Dena, and Vijaya Bank
The Government stated on 17th September 2018 that three of the PSU banks – Bank of Baroda, Dena Bank, and Vijaya Bank – will be merged by the end of the financial year. This merge will form the third largest bank in India. Arun Jaitley (Union Finance Minister), Piyush Goyal (Railway Minister), and Nirmala Sitharaman (Defence Minister) took this decision collectively. All the bank boards have been given appropriate amount of time to consider the proposal. Scroll down to read more details regarding Bank Merger in India.
Bank Merger in India
This decision has been made to boost the economic growth of the nation as well as clear bad loans. Rajiv Kumar, the financial services secretary, has stated that all the three banks will be provided capital till the process is complete. Furthermore, Jaitley assured that jobs would be safe.
The name of the merged unit has not been decided yet. Let us now have a look at the positive side of bank mergers.
Advantages of Bank Merger
- It results in higher profits.
- It also decreases the aggregated risk profile of the financial institute.
- New customers
- More capital to work with
- Fulfill product/technology gap
- Upgraded human skills and talent
Drawbacks of Bank Merger
- Less resources for a complete integration of the concerned units
- Merging the individual institute’s various units takes a lot of time and energy
- Customer acceptance may be affected
List of Bank Merger in India
- SBI, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Patial, State Bank of Travancore, and Bhartiya Mahila Bank. Previously, merging was done with State Bank of Indore, State Bank of Saurashtra, Kashinath State Bank, Bank of Cochin, Imperial Bank of India.
- Global Trust Bank, Punjab Cooperative Bank, Bari Doab Bank Ltd, and Oriental Bank of Commerce
- Ing Vysya Bank and Kotak Mahindra Bank
- Laskshmi Commercial Bank and Canara Bank
- Bank of Rajasthan, Bank of Madura, Sangli Bank, and ICICI Bank
- Centurion Bank of Punjab, Times Bank Ltd., and HDFC Bank
- South Gujarat Local Area Bank Ltd, Benares State Bank Ltd, Bareilly Corporation Bank, and Bank of Baroda
- Nedungadi Bank Ltd, New Bank of India, and Punjab National Bank
- Bharat Overseas Bank and Indian Overseas Bank
- United Western Bank and IDBI
- Ganesh Bank of Kurundwad and Federal Bank
- Bank of Karad and Bank of India
So, tell us, did you find our post on Bank Merger in India helpful? Then, keep visiting us regularly for more banking updates. And do share your thoughts with us in the comments section below. ‘Cause your opinion matters!
Share your thoughts/queries here!