When recently 27 public sector banks merged including the Punjab National Bank, nearly every individual was worried about his savings and even fixed deposits with the public sector banks. As per the announcement made by Sethurathnam Ravi, the amalgamation scheme listed the merger of various popular banks like Indian Bank merged with Allahabad Bank, Canara Bank merged with Syndicate Bank, Oriental Bank of Commerce and the United Bank of India merged with Punjab National Bank, and lastly, Andhra Bank and Corporation Bank merged with Union Bank. The announcement of the merger came with a huge impact on the 308732 employees of the banks, 37492 domestic branches, 45448 ATM centers, and Rs. 3179304 crore deposits.
However, the impact of the merger is not only limited to all these. It is much more than the figures and facts that are mentioned in the papers. As per the BSE Chairman, these mergers come with a huge impact on the fixed deposit holders, savings account holders, employees, shareholders, borrowers, and the public. The primary aim of these mergers was to create large banks that are more capable of solving financial issues. Also, the merger was introduced to eradicate any kind of disparity between the small banks and large banks, cost savings from compliances and network overlaps, creating large middle management for selecting eligible candidates for the post of CGM, GMs, and DGMs for HR Department, IT department, and Risk management and much more. Overall, the mergers would improve the efficiency of restructuring and decision-making on high-leading banks. Today, through this piece of information let’s talk about the impact of bank mergers as discussed by S Ravi BSE Chairman with some quick points, making it easy to understand.
As per the S Ravi BSE Former Chairman, the collaboration of the strong bank changes should be completely determined to imbue restored good faith among Public Sector Banks which will rely upon the initiative directing the cycle thinking about the mammoth difficulties of taking care of asset incorporation, data innovation stage reconciliation, administrative compliances, dealing with the requests of the Union, boosting the workers, client maintenance, creating specialty items, rebranding, and repositioning and the progression intending to proceed with the endeavors in the present financial slowdown, challenges in the credit development, and control on Non-performing Assets with the public authority giving the necessary catalyst every once in a while. Henceforth, it can be concluded that merging the banks is not a small task. It needs massive movement and understanding to make sure that everything is working seamlessly.
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MichaelMichael is Professor of Political Science and Head of Department. His research is on public administration and administrative reform, core executives, the role of civil servants in a transformed state, Archives
May 2024
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